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Full text of "Minutes"

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SAN FRANCISCO 
PUBLIC LIBRARY 

REFERENCE 
BOOK 

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SAN FRANCISCO PUBLIC L 



3 1223 05718 3312 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/5minutes1999sanf 




City and County of San Francisco atyHaii 

J J y i r> Carlton B. 

Meeting JMinutes Goodiett piace 

San Francisco, CA 

^Finance and Labor Committee 94102^68° 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 

Clerk: Mary Red 

Wednesday, July 07, 1999 10:00 AM City Hall, Room 263 

''/ Regular Meeting 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened DOCUMENTS DEPT. 

The meeting convened at 10: 10 a.m. JUL 9 1999 

D1TI-TTT AD APPMnA SAN FRANCISCO 

REGULAR AGENDA PUBL|C L|BRARY 



991244 [Authorizing funds for the installation of traffic signal at Eighth Avenue and Clement Street, a high-use 
intersection in the Inner Richmond commercial district; provide additional funds for Funston Lincoln 
new traffic signal] 
Supervisor Yaki 

Ordinance appropriating and certifying $78,915 for capital improvement projects (new traffic signal-contract 
51 and 52) to cover 10% overage as per Administrative Code Section 6.6 or Charter Section 9.1 13, providing 
for ratification of action previously taken, Department of Public Works, for Fiscal Year 1999-2000. 
6/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Kim Marschner, Supervisor Yaki's Aide: Hin 
Lok Kung, Public Works Department. In Support : Sofia Booker; Pat McCarthy. Amended on page 1. lines 2 
and 21 to change the contract number from "52" to "50"; and on page 1, line 3, delete "or Charter Section 
9.113". 
AMENDED. 

Ordinance appropriating and certifying $78,915 for capital improvement projects (new traffic signal-contract 
51 and 50) to cover 10% overage as per Administrative Code Section 6.6, providing for ratification of action 
previously taken, Department of Public Works, for Fiscal Year 1999-2000. 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991168 [Prop J Contract, Budget Analyst Servicesl 

Resolution concurring with the Controller's certification that Budget Analyst services can be practically 
performed by private contractor for lower cost than similar work services performed by City and County 
employees. (Clerk of the Board) 

6/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Ed Harrington, Controller; Supervisor Ammiano, Supervisor Yee 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco I Pnnud at itSt I'M 



I- inance and Labor Committee Meeting Minnies July T , 1999 



991062 |Prop J Contract, Jail Food Services] 

Resolution approving retroactively the Controller's certification that County Jail food service management 
operations for the City and County of San Francisco can practically be performed by private contractor at a 
lower cost for the year commencing July 1. 1999, than if work were performed by City and County 
employees. (Sheriff) 

5/26/99, RECEIVED AND ASSIGNED lo Finance and 1 abor Committee 

Heard in Committee. Speakers Harvey Rose, Budget Analyst. Jean Mariaai, Sheriff's Department. 
Supervisor Yee. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991063 | Prop J Contract, Pretrial Program| 

Resolution approving retroactively the Controller's certification that the Pretrial Diversion Program for the 
City and County of San Francisco can practically be performed by private contractor at a lower cost for the 
year commencing July 1, 1999, than if work were performed by City and County employees. (Sheriff) 
5/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Harvey Rose, Budget Analyst. Jean Mariani, Sheriffs Department 
Supervisor ) ee 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991064 |Prop J Contract, Own Recognizance Project| 

Resolution approving retroactively the Controller's certification that the San Francisco Own Recognizance 
Project for the City and County of San Francisco can practically be performed by private contractor at a lower 
cost for the year commencing July 1, 1999, than if work were performed by City and County employees. 
(Sheriff) 

5/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Haney Rose. Budget Analyst. Jean Mariani, Sheriffs Department. 
Supervisor Yee. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee. Bierman. Ammiano 



991019 [Prop J Contract, Convention Facilities Management Services] 

Resolution concurring with Controller's certification that convention facilities management operation and 
services can be practically performed at Bill Graham Civic Auditorium and Moscone Center by private 
contractor for lower cost than similar services performed by City and County employees. (Administrative 
Services Department) 

5/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers Haney Rose, Budget Analyst; Jack Moerschbaecher. Director. Convention 
Facilities Management Services. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee. Bierman, Ammiano 



City and County of San Francisco 2 Printed at 3:56 PM on ~~V9 

3 1223 05718 3312 



Finance and Labor Committee 



Meeting Minutes 



July 7, 1999 



990963 [License Agreement, Municipal Railway Parking] 

Resolution authorizing the retroactive license agreement renewal for parking at the Community Assembly of 
God Church for the Municipal Railway. (Real Estate Department) 
5/12/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Harry Quinn, Real Estate Department; 
Supervisor Yee; Robert Olson, Municipal Railway. Opposed: Steve Currier. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991061 [Reserved Funds, Fire Department] 

Hearing to consider release of reserved funds, Fire Department, in the total amount of $518,000 ($102,000 
from 1992 Fire Station Improvement Bond proceeds, Ordinance 8-95; $416,000 from 1992 Fire Protection 
Bond proceeds, Ordinance 430-96) for renovation work at Fire Station No. 12. (Department of Public Works) 
5/24/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Peter Wong, Department of Public Works. 
Bureau of Architecture. 

APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991092 [Park and Open Space Fund] 

Resolution concurring with the general recommendations of the Park and Open Space Fund for fiscal year 
1999-2000, reserving approval or disapproval on specific acquisitions. (Recreation and Parks Department) 

(Planning Commission Resolution No. 14823 adopted May 13, 1999, finding the program in the General 
Manager's Report on the 1999-2000 Park and Open Space Program to be in conformity with the Recreation 
and Open Space Element of the General Plan; Recreation and Park Commission Resolution 9905-081 dated 
May 13, 1999, adopting the General Manager's Report on the 1999-2000 Park and Open Space Program.) 
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Deborah Learner, Recreation and Park 
Department; Supervisor Yee; Harry Quinn, Real Estate Department; Supervisor Ammiano; Supervisor 
Bierman. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991129 [Lease: Property owned by the City of San Francisco which is located in Fremont to be used as a 
playground and parking lot for a neighboring childcare center.] 

Resolution authorizing a 10-year lease of Public Utilities Commission land between the City and County of 
San Francisco and Gan Haw Enterprises, Inc., in (Fremont) Alameda County. (Public Utilities Commission) 
6/4/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Gary Dowd, Public Utilities Commission. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Primed at 3:56 PM on 7/7/99 



7 45243 SFPL: ECONO JRS 
206 SFPL 11/22/00 38 



Finance and Labor Committer Meeting Minutes July ', 1999 



991206 | Waiving Statute of Limitations with respect to payment of old, expired C( SK warrants to Ste>en (. 
Barton in the sum of $24,034.67.| 

Resolution waiving the statute of limitations with respect to payment of certain warrants of the City and 
County of San Francisco, in the amount of $24,034.67, a legal obligation of the City and County of San 
Francisco. (Controller) 

99, Kl ■< I l\ I I) AND ASSIGNED lo Finance and Labor Committee 
Heard in Committee Speakers Harvey Rose. Budget Analyst; Ed Harrington. Controller. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991207 |License Agreement Amendment: City Park to increase rate from S70 to S80/parking space retnuitiM 
to April 1, 1999, for 41 vehicles for I His j 

Resolution authorizing an amendment to license agreement for a parking lot at Colusa Place and Colton Street, 
San Francisco for the Department of Human Services. (Real Estate Department) 
6/16/9'). Kl CI I VI I) AND ASSIGNED to Finance and I .abor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst. Harry Quinn. Real Estate Department. 

Supervisor Yee. 

RECOMMENDED by the following \ote: 

Ayes: 3 - Yee, Bierman. Ammiano 



ADJOURNMENT 

The meeting adjourned at ID 55 a.m. 



City and County of San Francisco 4 Printed at 3:56 PM on 7/7/W 



o 
'/7/11 



CITY AND COUNTY 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



OF SAN FRANCISCO 



,BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



July 2, 1999 



TO: , Finance and Labor Committee 

FROM: JBudget Analyst 



DOCUMENTS DEPT. 
JUL 6 19S9 



SUBJECT: July 7, 1999 Finance and Labor Committee Meeting SAN FRANCISCO 

"* PUBLIC LIBRARY 



Item 1 - File 99-1244 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Department of Public Works 

Appropriating and certifying $78,915 for capital 
improvement projects (new traffic signals - Contract Nos. 
51 and 52) to cover 10 percent construction cost overruns 
as per Administrative Code Section 6.6 or Charter Section 
9.113, providing for ratification of action previously taken 
by the Department of Public Works for Fiscal Year 1999- 
2000. 

$78,915 



Federal Congestion Management 

And Air Quality funds 
Proposition B Sales Tax funds 



$22,650 
$56.265 
$78,915 



This supplemental appropriation ordinance seeks Board 
of Supervisors approval for contract change orders costing 
more than 10 percent of the contracted price for installing 
new traffic signals under Contract Nos. 50 and 51. 



Memo to the Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



The original bid amount for Contract No. 50 (awarded on 
October 28, 1998) for new traffic signals at Funston and 
Lincoln Avenues, and conduits along portions of Lincoln 
Way and Kezar Drive, was $181,600, with a contingency 
of $18,160, for a total of $199,760. Change orders for 
extra work, materials, and supplies have generated an 
expenditure of $22,650 (11.3 percent) more than the total 
bid and contingency amount of $199,760. If approved, 
total Contract No. 50 expenditures would amount to 
$222,410. 

The original bid amount for Contract No. 51 (awarded on 
November 24, 1998) for the installation of traffic lights at 
eight intersections was $452,400, with a contingency of 
$45,140, for a total of $497,540. The contract was 
amended in May 1999 by an additional amount of 
$146,195 to fund the installation of traffic signals at two 
additional intersections. The $146,195 amount was 
approved by the Board of Supervisors in a supplemental 
appropriation ordinance (File 99-0669). The proposed 
installation of traffic signals at a third additional 
intersection (Eighth Avenue and Clement Street) would 
generate an additional expenditure of $56,265 (11.3 
percent) more than the total original bid and contingency 
amount of $497,540. If approved, total Contract No. 51 
expenditures would amount to $700,000. 

The Department of Public Works proposes to pay for the 
$78,915 in contract change orders with previously 
appropriated Federal Congestion Management and Air 
Quality Program funds ($22,650 for Contract No. 50) and 
previously appropriated Proposition B Sales Tax funds 
($56,265 for Contract No. 51). Section 6.6 of the 
Administrative Code requires that expenditures for work 
in excess of 10 percent above the bid amount of a unit-cost 
contract should be provided for by a supplemental 
appropriation. The contract change orders for both 
Contract Nos. 50 and 51 represent 11.3 percent increases 
over the contracts' total bid amounts and contingencies. 
Therefore, the Department now requests Board of 
Supervisors approval of this proposed supplemental 
appropriation ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 



Memo to the Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Comments: 1. Mr. Nelson Ogimoto of the Department of Public 

Works advises that this resolution incorrectly references 
Contract No. 50 as Contract No. 52. 

2. Mr. Ted Lakey of the City Attorney's Office states that 
the resolution's reference to Charter Section 9.113 is 
unnecessary. 

Recommendations: 1. In accordance with Comments 1 and 2 above, amend 

the resolution to substitute Contract No. 50 for Contract 
No. 52, and to delete the reference to Charter Section 
9.113. 

2. Approve the proposed resolution as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-1062 



Department: 
Item: 



Services to be 
Performed: 

Description: 



Sheriff 

Resolution retroactively concurring with the Controller's 
certification that County Jail Food Service Management 
operations for the City and County of San Francisco can 
continue to be practically performed by a private 
contractor at a lower cost for the year commencing July 1, 
1999, than if work were performed by City and County 
employees. 



County Jail Food Service Management 

Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for Jail 
Food Service Management services for FY 1999-2000 
would result in estimated savings as follows: 



Citv-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Services Cost 

Estimated Savings 



Lowest 

Salary 

Step 


Highest 

Salary 

Step 


$977,307 

265.393 

$1,242,700 


$1,156,704 

292.982 

$1,449,686 


941.614 


941.614 


$301,086 


$508,072 



Comments: 



1. Jail Food Service Management services consist of the 
administrative oversight and provision of meals at the six 
County jails. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



2. Jail Food Service Management services were first 
certified, as required under Proposition J (Charter Section 
10.104), in 1980 and have been continuously provided by 
an outside contractor since that time. 

3. The current five-year contract with Aramark 
Correctional Services expires on December 1, 1999. 
According to Ms. Jean Mariani, Budget Manager for the 
Sheriffs Department, the Department wishes to exercise 
the option for a one-year contract extension and is 
presently in negotiations with Aramark. The contract 
extension would commence December 2, 1999 for a period 
up to one year. According to Ms. Mariani, the contract will 
be put out for competitive bid in early 2000. 

4. The Contractual Services Cost used for the purpose of 
this analysis is based on Aramark Correctional Services' 
projected FY 1999-2000 costs to provide County Jail Food 
Services Management services. 

5. The estimated FY 1999-2000 Contractual Services 
Cost of $941,614 is $140,014 or 17.5 percent more than 
the FY 1998-99 cost of $801,600. According to Ms. Jean 
Mariani, Budget Manager for the Sheriffs Department, 
the 17.5 percent increase in the contract cost can be 
directly attributed to inmate population growth and cost 
of living adjustments (COLAs). A review conducted in 
FY1998-99 by the Budget Analyst verified this increase in 
jail population. 

6. The Controller's supplemental questionnaire with the 
Department's responses is shown attached to this report. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Sheriff 

CONTRACT SERVICES: Aramark Correctional Services - Food Contract 

CONTRACT PERIOD: July 1, 1999 - June 30, 2000 

(1 ) Who performed the activity/service prior to contracting out? City employees, including 
a Food Service Administrator, Chefs and Cook, provided this service prior to 1980. 

(2) How many City employees were laid off as a result of contracting out? None. 

(3) Explain the disposition of employees if they were not laid off. The Food Service 
Administrator's position was vacant; 5 Chefs and 1 Cook were hired by departments with similar 
classifications. The Mayor's Office deleted the positions from the Fy 1994-95 budget. 

(4) What percentage of City employees' time is spent of services to be contracted 
Out? None. 

(5) How long have the services been contracted out? Since 1980. 

Is this likely to be a one-time or an ongoing request for contracting out? 
On-going. 

(6) What was the first fiscal year for a Proposition J certification? fyi 980-81 
Has it been certified for each subsequent year? Yes. 

(7) How will the services meet the goals of your MBE/WBE Action Plan? 

The department has a waiver for this contracted service, which is a highly specialized and 
competitively bid contract. 

(8) Does the proposed contract request that the contractor provide health insurance 
for its employees? No. 

Even if not required, are health benefits provided? Yes. 

(9) Does the proposed contractor provide benefits to employees with spouses? 

Yes. 
If so, are the same benefits provided to employees with domestic partners? 

No. 
If not, how does the proposed contractor comply with the Domestic Partners 
ordinance? Current contract expires 1 1/30/99. Contractor understands that any contract 
modification prior to that time will require compliance with ordinance. Contractor has submitted 
documentation to Human Rights Commission. 

Department Representative: Jean Mariani 

Telephone Number (415)554-4316 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 4 - File 99-1063 



Department: 
Item: 



Services to be 
Performed: 

Description: 



Sheriff 

Resolution retroactively concurring with the Controller's 
certification that the Pre-Trial Diversion Project for the 
City and County of San Francisco can continue to be 
practically performed by a private contractor at a lower 
cost for the year commencing July 1, 1999, than if the 
work were performed by City and County employees. 



Pre-Trial Diversion Project 

Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for the 
Pre-Trial Diversion Project for FY 1999-2000 would result 
in estimated savings as follows: 



Citv-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Services Cost 

Estimated Savings 

* Totals differ from the Controller's analysis due to rounding 



Lowest 
Salary 
Step 


Highest 

Salary 

Step 


$534,764 

142.172 

r $676,936 


$632,337 
157.510 

$789,847 


512.142 


512.142 


$164,794 


*$277.705 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Comments: 



1. The Pre-Trial Diversion Project diverts selected 
misdemeanor offenders from the criminal justice system 
and places such offenders in the Pre-Trial Diversion 
Project to receive vocational training, job placement and 
counseling. 



2. The Sheriffs Department reports that this service was 
first certified as required under Proposition J, (Charter 
Section 10.104) in FY 1977-78 and has been continuously 
provided by an outside contractor since that time. 

3. The prior one-year contract with the San Francisco 
Diversion Project, the non-profit organization which 
provides the Pre-Trial Diversion Project, expires on June 
30, 1999. The Sheriffs Department wishes to exercise its 
option to renew this contract. Approval of the proposed 
resolution is required before the expired contract with the 
San Francisco Diversion Project can be renewed for FA' 
1999-2000. 

4. The Contractual Services Cost used for the purpose of 
this analysis is the San Francisco Pre-Trial Diversion 
Project's projected FY 1999-2000 cost for the Pre-Trial 
Diversion Project. 

5. The estimated FY 1999-2000 Contractual Services 
Cost of $512,142 is the same as the FY 1998-99 cost. 



Recommendation: 



6. The Controller's supplemental questionnaire with the 
Department's responses is attached to this report. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Sheriff 

CONTRACT SERVICES: San Francisco Pretrial Diversion Project 

CONTRACT PERIOD: July 1, 1999 - June 30, 2000 

(1 ) Who performed the activity/service prior to contracting out? 

Service was initially funded through Federal grant monies and service workers performed 
the duties. 

(2) How many City employees were laid off as a result of contracting out? 
None. 

(3) Explain the disposition of employees if they were not laid off. Not applicable. 

(4) What percentage of City employees' time is spent of services to be 
contracted out? None. 

(5) How long have the services been contracted out? Since 1977. 

Is this likely to be a one-time or an ongoing request for contracting out? 

On-going. 

(6) What was the first fiscal year for a Proposition J certification? FY1977-78 
Has it been certified for each subsequent year? Yes. 

(7) How will the services meet the goals of your MBEAVBE Action Plan? 

Because a non-profit organization provides the services, the MBE/WBE Plan is not 
affected. 

(8) Does the proposed contract request that the contractor provide health 
insurance for its employees? No. 

Even if not required, are health benefits provided? Yes. 

(9) Does the proposed contractor provide benefits to employees with 
spouses? Yes. 

If so, are the same benefits provided to employees with domestic 
partners? Yes. 

If not, how does the proposed contractor comply with the Domestic 
Partners ordinance? Contractor complies with ordinance. 

Department Representative: Jean Mariani 

Telephone Number (415)554-4316 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 5 -File 99-1064 



Department: 
Item: 



Services to be 
Performed: 

Description: 



Sheriff 

Resolution retroactively concurring with the Controller's 
certification that the San Francisco Own Recognizance 
Project (O.R.) for the City and County of San Francisco 
can continue to be practically performed by a private 
contractor at a lower cost for the year commencing July 1, 
1999, than if the work were performed by City and 
County employees. 



Own Recognizance Project 

Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for the 
Own Recognizance Project for FY 1999-2000 would result 
in estimated savings as follows: 



City-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Services Cost 

Estimated Savings 



* Totals differ from the Controller's analysis due to rounding. 



Lowest 

Salary 

Step 


Highest 

Salary 

Step 


$805,569 

214.572 

*$1, 020,141 


$953,025 

237.255 

$1,190,280 


821.596 


821.596 


*$198.545 


$368,684 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Comments: 



1. The Own Recognizance Project interviews all persons, 
arrested on non-warrant felony charges and certain 
misdemeanors that are not citable by the Sheriffs 
Department, who are booked into custody and are not 
immediately bailed or cited. 

2. The Sheriffs Department reports that the O.R. Project 
was first certified under Proposition J, (Charter Section 
10.104), in FY 1977-78 and has been continuously 
provided by an outside contractor since that time. 

3. The prior one-year contract with the San Francisco 
Institute for Criminal Justice-O.R Project expires on June 
30, 1999. The Sheriffs Department wishes to exercise its 
option to renew this contract. Approval of this proposed 
resolution is required before the expired contract with the 
San Francisco Institute for Criminal Justice-O.R Project 
can be renewed for FY 1999-2000. 

4. The Contractual Services Cost used for the purpose of 
this analysis is the San Francisco Institute for Criminal 
Justice-O.R. Projects' projected FY 1999-2000 cost for the 
Own Recognizance Project. 

5. The Contractual Services Cost of $821,596 for FY 
1999-2000 is $28,833 or 3.6 percent more than the FY* 
1998-99 cost of $792,763. 



Recommendation: 



6. The Controller's supplemental questionnaire with the 
Department's responses is attached to this report. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Attachment 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Sheriff 

CONTRACT SERVICES: San Francisco Institute for Criminal Justice 

Own Recognizance (OR) Project 
CONTRACT PERIOD: July 1, 1999 -June 30, 2000 

(1 ) Who performed the activity/service prior to contracting out? 
Service was not provided. 

(2) How many City employees were laid off as a result of contracting out? 
None. 

(3) Explain the disposition of employees if they were not laid off. Not applicable. 

(4) What percentage of City employees' time is spent of services to be 
contracted out? None. 

(5) How long have the services been contracted out? Since 1966. 

Is this likely to be a one-time or an ongoing request for contracting out? 

On-going. 

(6) What was the first fiscal year for a Proposition J certification? fyi 977-78 
Has it been certified for each subsequent year? Yes. 

(7) How will the services meet the goals of your MBEAWBE Action Plan? 

Because a non-profit organization provides the services, the MBE/WBE Plan is not 
affected. 

(8) Does the proposed contract request that the contractor provide health 
insurance for its employees? No. 

Even if not required, are health benefits provided? Yes. 

(9) Does the proposed contractor provide benefits to employees with 
spouses? Yes. 

If so, are the same benefits provided to employees with domestic 
partners? Yes. 

If not, how does the proposed contractor comply with the Domestic 
Partners ordinance? Contractor complies with ordinance. 

Department Representative: Jean Mariani 

Telephone Number (415) 554-4316 



12 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 6 -File 99-1019 



Department: 
Item: 



Services to be 
Performed: 



Department of Administrative Services (DAS) 

Resolution concurring with the Controller's certification 
that convention facilities management, operation and 
maintenance services can continue to be practically 
performed at Bill Graham Civic Auditorium and Moscone 
Center by a private contractor at a lower cost than similar 
work services performed by City and County employees. 

Convention facilities management, operation and 
maintenance 



Description: 



Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for 
convention facilities management, operations and 
maintenance services at the Bill Graham Civic 
Auditorium and Moscone Center for FY 1999-2000 would 
result in the estimated savings as follows: 



Citv-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 



Lowest 


Highest 


Salarv 


Salarv 


Step 


Step 



$8,844,285 $10,457,755 

2.360.376 2.611.853 

$11,204,661 $13,069,608 



Contractual Services Cost 10.532.906 10.532.906 



Comments: 



Estimated Savings 



$671.755 $2.536.702 



1. Moscone Joint Venture, consisting of the Spectacor 
Management Group and Thigpen Limited, Inc., is fully 
responsible for managing, operating and maintaining the 
Bill Graham Civic Auditorium and Moscone Center. 
Specifically, Moscone Joint Venture's responsibilities 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



13 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

include: (1) contracting with others for their use of the 
convention facilities; (2) promoting the use of the 
convention facilities; (3) conducting event management 
activities; (4) recruiting, employing, supervising and 
paying employees; and (5) maintaining the convention 
facilities and the equipment therein. 

2. Convention facilities management, operation and 
maintenance services at Bill Graham Civic Auditorium 
and Moscone Center were first certified, as required by 
Charter Section 10.104, in 1981 and have been 
continuously provided by an outside contractor since that 
time. 

3. The prior four-year contract with Moscone Joint 
Venture for the provision of convention facilities 
management, operations and maintenance services at the 
Bill Graham Civic Auditorium and Moscone Center 
expired on June 30, 1999. This contract contained an 
option to renew the term for an additional period not to 
exceed five years. As such, the Department of 
Administrative Services (DAS) reports that in January of 
1999, DAS exercised this option to renew the contract 
with Moscone Center Venture for a five-year period of 
July 1, 1999 through June 30, 2004. 

4. The Contractual Services Cost used for the purpose of 
this analysis is the Moscone Joint Venture's projected FY 
1999-2000 costs to provide convention facilities 
management, operation and maintenance. 

5. The Contractual Services Cost of $10,532,906 for FY 
1999-2000 is $370,374 or 3.6 percent more than in the FY 
1998-99 cost of $10,162,532. 

6. The Controller's supplemental questionnaire with the 
Department's responses is attached to this report. 

7. The proposed resolution should be amended to 
retroactively approve the Controller's certification as of 
July 1, 1999. 

Recommendation: Amend the proposed resolution for retroactivity and 

approve the proposed resolution as amended. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Attachment 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: San Francisco Convention Facilities 
CONTRACT SERVICES: Operations . 



CONTRACT PERIOD: July 1, 1999 - June 30 . 2000 

(1) Who performed the activity/service prior to contracting out? 

City 

(2) How many City employees were laid off as a result of contracting out? 

None 

(3) Explain the disposition of employees if they were not laid off. 

Employees went to work for the contractor. 

(4) What percentage of City employees' time is spent of services to be contracted out? 

0% 

(5) How long have the services been contracted our? Is this likely to be a one-time or an ongoing 
request for contracting our? 

18 Years 

(6) What was the first fiscal year for a Proposition J certification? Has it been certified for each 
subsequent year? 

1982 - 1983. Yes. 

(7) How will the services meet the goals of your MBE/WBE Action Plan? 

Contractor is a joint venture with a minority principal. 

(8) Dees the proposed contract requirt that the contractor provide health insurance for its employees? 
Even ir not required, are health benefits provided? 

Yes. 

(9) Does the proposed contractor provide benefits to employees with spouses? If so, are the same 
benefits provided to employees with domestic partners? If not. how does the proposed contractor 
comply with the Domestic Partners ordinance? 

Yes 

Department Representative: Jack Moerschbaecher 

Telephone Number 554-61 78 



15 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 7 - 99-0963 



Department: 



Item: 



Term of Agreement: 



Amount: 



Source of Funds: 



Description: 



Department of Real Estate (DRE) 
Municipal Railway (MUNI) 

Resolution authorizing the retroactive renewal of an 
existing license agreement for parking at the Community 
Assembly of God Church, located at 355 Ocean Avenue, 
for the Municipal Railway. 

April 1, 1999 through March 31, 2001 (2 years) with the 
option to extend for one additional year. 

$19,500 annually for the two-year period from April 1, 
1999 through March 31, 2001 and $24,000 for the 
additional one-year option. 

Ms. Gail Bloom of the Municipal Railway (MUNI) advises 
that monies from the Light Rail Vehicle Procurement 
Project, which is composed of 60% Federal funds, 20% 
State funds and 20% local funds, will pay for the proposed 
license agreement. The source of the local funds is the 
San Francisco Transportation Authority Sales Tax Fund, 
according to Ms. Bloom. 

In March of 1997, the Board of Supervisors approved a 
resolution (File No. 47-97-1), which authorized the 
Director of Property to enter into a one-year license 
agreement with the Community Assembly of God Church 
for the use of 65 parking spaces by City-owned and 
privately-owned vehicles of MUNI employees. The term 
of this agreement was April 1, 1997 through March 31, 
1998 with an option to extend the term for one additional 
year. 

According to Mr. Tony Tufo of MUNI, the subject 65 
parking spaces were needed by MUNI to accommodate 
City-owned and privately-owned vehicles of MUNI 
employees because 85 parking spaces located within 
MUNI's maintenance yard at 425 Geneva Avenue, known 
as the Green Division, became unavailable as a result of 
MUNI's need to store new light rail vehicles (LRVs) at 
425 Geneva Avenue. Mr. Tufo states that the Director of 
Property exercised the option to extend the term of this 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



16 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



existing license agreement for one additional year until 
March 31, 1999. 

Approval of the proposed resolution would authorize the 
Director of Property to renew the existing license 
agreement with the Community Assembly of God Church 
for the use of 65 parking spaces by City-owned and 
privately-owned vehicles of MUNI employees for the two- 
year period retroactive from April 1, 1999 through March 
31, 2001, plus a one-year option. 

According to Mr. Tufo, the subject 65 parking spaces 
continue to be needed by MUNI to accommodate City- 
owned and privately-owned vehicles of MUNI employees 
because the previous parking area utilized, located within 
MUNI's Green Division maintenance yard at 425 Geneva 
Avenue, which accomodated 85 vehicles, is needed to store 
additional light rail vehicles (LRYs). The Attachment, 
provided by Mr. Tufo, explains in further detail MUNI's 
continued need for the 65 parking spaces at the 
Community Assembly of God Church. 



Increase from 
Prior Rent: 



Comment: 



The existing license agreement with Community 
Assembly of God Church expired on March 31, 1999. 
Under that agreement, the City paid a monthly rate of 
$1,625, or $25 per parking space, for a total annual cost of 
$19,500. Under the proposed license agreement, the City 
would continue to pay a monthly rent of $1,625, or $25 
per parking space, for a total annual cost of $19,500 for 
the two-year period from April 1, 1999 through March 31, 
2001. However, if the additional one-year option is 
exercised, the monthly rent would be increased to $2,000 
or $30.77 per parking space, for a total annual cost of 
$24,000. This is an increase of $4,500 annually or 23 
percent. 

Mr. Larry Jacobson of the Department of Real Estate 
reports that the monthly parking rental rates to be paid 
by MUNI, under the proposed license agreement, are 
below fair market value. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



17 



Attachment 



July 1,1999 

To: Gabriel Cabrera 
Budget Analyst 

Fr: Tony Tufo 

Project Planner 

Subject: Green Division Parking 

The Green Light Rail Division was originally designed to store 147 light rail vehicles. 
The current equipment count that includes the 136 light rail vehicles, 18 F-line PCC cars, 
10 F-line extension Milan cars and the 18 historical rail cars, totals 183 vehicles. Prior to 
the purchase of the Breda LRV's, the Milan cars and the additions to the historical fleet, 
the Green Division could also accommodate 85 city vehicles and employee automobiles 
on the property. As you can see we have increased our fleet size beyond the actual 
capacity of the facility, eliminating the automobile parking we once had. In fact we have 
been gradually bringing our staffing levels up by hiring train operators, maintenance 
workers, and transit inspectors (10 additional city vehicles) which has added to our 
parking problem. 



18 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Item 8 -99-1061 

Department: 

Item: 



Amount: 
Source of Funds: 



Fire Department 

Hearing to consider the release of reserved funds from 
1992 Fire Protection Bond proceeds in the amount of 
$518,000 for the renovation of Fire Station No. 12, located 
at 1145 Stanyan Street. 

$518,000 

Release of reserves from previously appropriated 1992 
Fire Protection Bond Fund monies. 



Description: 



In January of 1995, the Board of Supervisors approved an 
ordinance appropriating $9,400,000 from the second sale 
of Fire Protection Bond funds for architectural and 
engineering services and construction costs in connection 
with the renovation of various Fire Department facilities, 
including the upgrade and renovation of Fire Station No. 
12 (File No. 101-94-40). Of this $9,400,000, the Board of 
Supervisors reserved $4,630,882 pending DPW's selection 
of contractors and submission of contract cost details. 
The Budget Committee subsequently released a total of 
$4,388,882 of the $4,630,882, leaving a balance of 
$242,000 on reserve. 

In addition, in November of 1996, the Board of 
Supervisors approved an ordinance appropriating 
$14,233,588 from the third sale of Fire Protection Bond 
funds for architectural and engineering services and 
construction costs in connection with the renovation of 
various Fire Department facilities, including the upgrade 
and renovation of Fire Station No. 12 (File No. 101-96- 
12). Of this $14,233,588, the Board of Supervisors 
reserved $7,864,100 pending DPWs selection of 
contractors and submission of contract cost details. The 
Budget Committee subsequently released a total of 
$3,624,872 of the $7,864,100, leaving a balance of 
$4,239,228 on reserve. 

The proposed request would authorize the release of 
$102,000 in previously reserved funds under File No. 101- 
94-40 and $416,000 in previously reserved funds under 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



19 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Budget: 



File No. 101-96-12 or a total of $518,000 for the 
renovation of Fire Station No. 12, leaving balances of 
$140,000 (File No. 101-94-40) and $3,823,228 (File No. 
101-96-12) on reserve. 

According to Mr. Peter Wong of the DPW's Bureau of 
Architecture, construction work to be performed for the 
renovation of Fire Station No. 12, located at 1145 
Stanyan Street. The work consists of general remodeling, 
creating separate shower and restroom facilities for 
female firefighters, mechanical and electrical system 
upgrades, asbestos abatement and disability access 
improvements. 

The construction contract for the renovation of Fire 
Station No. 12 totals $612,190 and was awarded to Kin 
Wo Construction, Inc., which submitted the low bid. 

Attachment I, provided by DPW, contains the contract 
details and subcontractor allocations for this $612,190 
contract. 

Attachment II, also provided by DPW, is a list of the firms 
which submitted bids for the subject renovation work and 
the amounts of each bid. 



Comment: 



The proposed request for release of reserved funds of 
$518,000 for the renovation of Fire Station No. 12 
requires an additional $94,190 (total construction 
contract amount of $612,190 less the requested release of 
$518,000 on reserve), which will be funded from 
previously appropriated monies (see Comment). 

As noted above, the proposed request for release of 
reserved funds of $518,000 for the renovation work is 
$94,190 less than the total construction contract of 
$612,190. According to Mr. Wong, the source of the 
additional $94,190 would be previously appropriated 1992 
Fire Protection Bond monies. 



Recommendation: 



Approve the requested release of reserved funds. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



20 



Attachment 1 



DEPARTMENT OF PUBLIC WOKRS 
BUREAU OF ARCHITECTURE 



PROJECT TITLE: SFFD STATION 12 RENOVATION 
JOB NO.: 5465A 



CONSTRUCTION CONTRACT COST BREAKDOWN 
1. BASE BID CONSTRUCTION CONTRACT 



Prime Contractor WBW/MBE/LBE ( 39.69% of Base Bid) 

Kin Wo Construction. Inc., General Contractor S242.883 5242,883 

Subcontractors MBE (32.35% of Base Bid) 

D & S Associates (plumbing) 20,860 

Yum's Mechanical 85,000 

Standard Cabinet 21238 

Pioneer Roofing 46,976 

Joe Wang (flooring) 24.000 

Subcontractors WBE (7.18% of Base Bid) 

Doherty (painting) 44.000 

Subcontractors Non-MBE/WBE (20.78% of Base Bid) 

Dees-Hennessey Inc (shotcrete) 5,485 

Cookson Door Sales (overhead doors) 14,393 

Peninsulators Inc ( windows) 4,075 

S W Electrical Inc 92,000 

Kwan Wo Ironworks 8,100 

Warda Enterprise (toilet partitions) 3.180 



2. FUNDING SOURCE: 



h.^pwong •finance'. I 2cons.doc 

21 



198,074 



44.000 



127.233 
Total: $612,190 



a. 2nd Bond Sale Appropriation - Construction Reserve 5102,000 This Request 

b. 3rd Bond Sale Appropriation - Construction Reserve 416,000 This Request 

c. Available/Approved Fund (Ord. 430-96) 94.190 

Total: 5612,190 



Attachment II 



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_i c. 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Item 9 -File 99-1092 

Department: 

Item: 



Description: 



Recreation and Park Department 

Resolution concurring with the joint recommendations of 
the Recreation and Park Commission and the Planning 
Commission for the FY 1999-2000 San Francisco Park 
and Open Space Program, with the reservation that the 
Board of Supervisors may approve or disapprove any 
specific acquisitions for which funding might be provided 
in the FY 1999-2000 Park and Open Space Program 
budget, at such time as the acquisitions are presented to 
the Board of Supervisors for approval. 

Charter Section 16.107 established the Park and Open 
Space Fund, funded for fifteen years (FY 1975-76 to FY 
1989-90) under Proposition J by an annual Property Tax 
of 2.5 cents per hundred dollars of assessed property 
valuation. In November 1988, San Francisco voters 
approved Proposition E, which extended the Fund for an 
additional 15 years, from FY 1990-91 to FY 2004-05. 
Therefore, FY 1999-2000 represents the tenth year of the 
Park and Open Space Program established by Proposition 
E. 

According to Charter Section 16.107, not more than 40 
percent of the Fund in any 3 r ear can be used for 
maintenance of properties previously acquired under 
Proposition J. Of the remaining money in the Fund (60 
percent of the total): (1) at least 40 percent must be 
allocated to acquiring and developing property; (2) at 
least 15 percent must be allocated to renovation; (3) not 
more than 25 percent can be allocated to administrative 
activities and to maintaining property and recreational 
facilities acquired under Proposition E for programs other 
than the after-school recreation programs; and (4) 20 
percent must be used for after-school recreation 
programs. 

The Park and Open Space Program is administered by the 
Recreation and Park Department, with input from the 
Park and Open Space Citizens Advisory Committee. The 
Department's General Manager prepares an annual 
expenditure plan on the basis of that Committee's 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



23 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



recommendations. This expenditure plan is submitted to 
the Recreation and Park Commission and the City 
Planning Commission for their approval in a joint 
hearing. 

Under the proposed resolution, the Board of Supervisors 
would concur with the May 13, 1999 joint 
recommendations of the Recreation and Park Commission 
and the Planning Commission to adopt the expenditure 
plan contained in the Recreation and Park Department 
General Manager's FY 1999-2000 report. However, the 
Board of Supervisors would reserve the right to approve 
or disapprove any specific acquisitions for which funding 
might be provided in the FY 1999-2000 Park and Open 
Space Program budget. 

The Recreation and Park Department's proposed FY 
1999-2000 budget for the Park and Open Space Program 
is $18,500,197. The $18,500,197 includes (a) $17,000,000 
in Property Taxes and interest earnings, (b) a one-time 
fund surplus of $1,000,000 (accumulated as a result of 
1998-99 operating underexpenditures, and higher than 
projected Property Tax and interest earnings revenues), 
and (c) $500,197 in reprogrammed funds from prior years. 

The following two tables show the budgeted FY* 1999-2000 
expenditures from the Park and Open Space Fund. The 
table immediately below shows the breakdown of the 
entire FY 1999-2000 budget into the two broad 
expenditure categories mandated by Proposition E of (a) 
expenditures on the maintenance of properties previously 
acquired under Proposition J. and ft) other expenditures: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 







$ Amount and 








Percentage 


Percentage 








Breakdown of 


Breakdown of 


FY 1999- 






Park and Open 


Park and Open 


2000 






Space Fund 


Space Fund 


Reprogram 






Budgeted 


Budgeted 


-med 






Expenditures 


Expenditures 


Funds from 


Total Funds 




Mandated by 


in FY 1999- 


Previous 


Available in 




Proposition E 


2000 


Years 


FY 1999-2000 


Park and Open Space 


Up to 40% 


$6,306,868 





$6,306,868 


Funding for Prop. J 




(35%) 






Maintenance 










Other Expenditures (see 


At least 60% 


11,693,132 


$500,197 


12,193,329 


table below for breakdown) 




(65%) 






TOTAL 


100% 


$18,000,000 
(100%) 


$500,197 


$18,500,197 



The following table breaks down the "Other 
Expenditures" line item in the table above in terms of 
Proposition E mandates: 







S Amount and 








Percentage of 


Percentage of 








Park and Open 


Park and Open 








Space Fund 


Space Fund 




Total Other 




Other 


Other 


FY 1999-2000 


Expenditure 




Expenditures 


Expenditures 


Reprogrammed 


Funds 




Mandated by 


in FY 1999- 


Funds from 


Available in 




Proposition E 


2000 


Previous Years 


FY' 1999-2000 


Acquisition and 


At least 40% 


$4,677,253 


$401,000 


$5,078,253 


Development 




(40%) 






Renovation 


At least 15% 


2,564,886 
(22%) 


99,197 


2,664,083 


Prop. E Maintenance 


Up to 25% 


2,112,367 
(18%) 





2,112,367 


After School Program 


20% 


2.338,626 
(20%) 





2.338,626 


TOTAL 


100% 


$11,693,132 
(100%) 


$500,197 


$12,193,329 



Comments: 



1. In the FY 1999-2000 Park and Open Space Program, 
no new sites have been recommended for acquisition. 
According to the Recreation and Park Department, 
because the Program is in the latter half of its 15-year 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



25 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



life-span, the emphasis of its proposed $5,078,253 
acquisition and development budget and its $2,664,083 
renovation budget will be on (a) the acquisition of natural 
areas and open spaces which enlarge sites already 
acquired, and (b) the development of already acquired 
sites. 

2. The proposed budget for Proposition E Maintenance 
includes funding for 11 new positions. Each new position 
and its annualized cost at the top salary step, using 
anticipated FY 1999-2000 salary rates, is as follows: 









Annualized 








Salarv at 




Position 


FTEs 


Tod Step 


2708: 


Custodian - Richmond 


1.00 


$38,184 


3417: 


Gardener - Chinatown/Richmond 


1.00 


43,483 


3284: 


Recreation Directors - Richmond 


7.00 


289,394 


5297: 


Planner V 


1.00 


95,082 


7345: 


Electrician - Richmond/Chinatown 


1.00 


61.726 




Total: 


11.00 


$527,869 



These 11 new positions are included in the Recreation and 
Park Department's proposed FY' 1999-2000 budget. The 
Budget Analyst has recommended the approval of these 
proposed positions. 

3. The proposed FY 1999-2000 Park and Open Space 
Fund budget would reprogram a total of $500,197 from 
projects funded in previous years that are now either 
inactive or on hold. The reprogramming of funds, and 
each affected project's status according to Ms. Deborah 
Learner of the Recreation and Park Department, is 
summarized as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 







Projects To 






Which Funds 




Projects From Which Funds Would Be 


Would Be 


Amount 


Transferred 


Transferred 


$1,000 


Sharon Arts Studio — New Site 


Community 




(Status: the remaining budgetary surplus of 


Garden Program 




$1,000 for moving the studio out of Golden Gate 






Park is no longer required because, under the 






Golden Gate Park Master Plan, the studio will 






remain at its current site) 




$300,000 


Esprit Park 


Eureka Valley 




(Status: Esprit Park not currently available for 


Recreation 




purchase) 


Center 


$100,000 


Esprit Park 


Seed Program: 




(Status: Esprit Park not currently available for 


Edgehill 




purchase) 


Mountain Open 
Space Extension, 
Phase I 


$49,197 


Precita Park 


Children's Play 




(Status: Phase II has been completed, resulting 


Areas Spending 




in a $49,197 fund surplus) 


Plan: Contin- 
gency Plan 


$50,000 


Margaret Hayward Playground 


Mission Dolores 




(Status: the disability access improvements 


Park 




project is over-budgeted by $50,000) 
TOTAL 




$500,197 



4. The proposed resolution states that if the City and 
County of San Francisco received funds from private 
sources that could be devoted to the construction of a 
replacement Martin Luther King Pool in excess of the 
amount required to complete its construction 
($1,400,000), those funds would be used to replace some 
or all of the $400,000 to be reprogrammed from the 
acquisition of Esprit Park. 

5. As outlined in the above table, the Recreation and 
Park Department is recommending that $400,000 be 
reprogrammed in FY 1999-2000 from the acquisition of 
Esprit Park. According to Mr. Joel Robinson, Acting 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



27 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

General Manager of the Recreation and Park 
Department, in his April 25, 1999 letter to the members of 
the Recreation and Park Commission and the Planning 
Commission, this acquisition is currently on hold due to 
the Esprit Corporation's withdrawal of its offer to sell the 
property to the City for $2,000,000. Mr. Robinson noted 
that the Esprit Corporation's original offer of $2,000,000 
is significantly below current market value. 

On December 21, 1998, the Board of Supervisors approved 
Resolution 1079-98 urging the Recreation and Park 
Department to maintain the FY 1998-99 budget allocation 
of $1,000,000 in FY 1999-2000 for the purchase of Esprit 
Park. According to Ms. Learner, the Recreation and Park 
Department has attempted to balance the priority 
accorded to Esprit Park with other priority initiatives by 
keeping a balance of $600,000 available for Esprit Park 
acquisition, while reprogramming $400,000 to two other 
high priorities: the Eureka Valley Recreation Center 
renovation and the Edgehill Mountain open space 
purchase. In relation to the Esprit Park acquisition, Ms. 
Learner states that the Department is continuing to look 
for other funding sources, and remains willing to 
negotiate an acceptable purchase price for the property 
with the park's owners. 

6. Based on the program budget outlined in the 
Recreation and Park Department General Manager's 
report, the percentage of the $18,000,000 fund proceeds to 
be expended for each Proposition E category of 
expenditures is in conformance with the requirements of 
Charter Section 16.107. (The figure of $18,000,000 
represents the total FY 1999-2000 budget of $18,500,197 
less $500,197 of reprogrammed funds which do not have 
to be expended according to Proposition E mandates.) 

Recommendation: Approval of the proposed resolution is a policy decision for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 10 - File 99-1129 



Department: 
Item: 



San Francisco Public Utilities Commission 

Resolution authorizing a ten year lease renewal of City- 
owned land in Alameda County, under the jurisdiction of 
the Public Utilities Commission, to Gan Haw Enterprises 
Inc. 



Location: 



Purpose of Lease: 



Lessor: 



A portion of Pipeline Right of Way Land (also known as the 
Bay Division Pipeline No. 1 and 2, Parcel 1211), between 
Stevenson Boulevard and Lindsay McDermott Lane, 
Fremont, Alameda County 

To allow Gan Haw Enterprises Inc. to continue use of a 
playground and a paved parking lot with landscaping 
adjacent to the Kid's Wonderland Daycare Center. 

City and County of San Francisco, through the Public 
Utilities Commission 



Lessee: 



No. of Sq. Ft. and 
Cost Per Month: 



Gan Haw Enterprises Inc., doing business as the Kid's 
Wonderland Daycare Center 



12,197 square feet (approximately 0.28 acres) at $658.62 
per month 



Annual Rent Payable 
By Gan Haw 
Enterprises Inc. to 
The City: 



$7,903.52. From the first anniversary of the lease 
commencement date, the annual rent will be adjusted ever}' 
twelve months by any annual percentage increase of the 
Consumer Price Index. The monthly base rent on or after 
the adjustment date cannot be less than the monthly base 
rent in effect immediately prior to the adjustment date. 

In addition, the base rent will be adjusted to equal the fair 
market rental of such property on the fifth anniversary of 
the lease commencement date. This adjustment will be 
determined according to (a) land values in the area, (b) the 
fair market rent for space of comparable size and location, 
and (c) the duration of comparable leases. The annual base 
rent on or after the adjustment date cannot be less than the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



29 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Increase in Rent 
From Prior Lease: 



Term of Lease: 

Right of Renewal: 
Description: 



annual base rent in effect immediately prior to the 
adjustment date. 



Whereas the previous lease between Gan Haw Enterprises 
Inc. and the City was $402 per month ($4,824 per year), if 
approved the new lease will be $658.62 per month 
($7,903.52 per year). This represents an increase of 
$256.62 per month ($3,079.44 per year), or approximately 
64 percent. 

The proposed lease would commence upon approval by the 
Board of Supervisors and would expire ten years thereafter 
(approximately July 2009). 

None 

The proposed resolution would authorize a ten year lease of 
approximately 0.28 acres of City-owned land located in 
Fremont, Alameda County, which is under the jurisdiction 
of the San Francisco Public Utilities Commission. The Bay 
Division Pipelines No. 1 and 2 run under this land to 
transport and distribute water for municipal use. Under 
the proposed lease, the Public Utilities Commission would 
retain all rights to operate, maintain, repair, and/or 
reconstruct those pipelines. 

In 1995, Gan Haw Enterprises Inc. purchased the Kids' 
Wonderland Childcare Center adjacent to the subject 
Public Utilities Commission property. The existing City 
lease and rental rate of $402 per month was assigned by 
the previous owner, the Kids' Wonderland Childcare 
Center, to Gan Haw Enterprises Inc. Public Utilities 
Commission approval for the assignment was not obtained 
until 1997, at which time it granted approval retroactive to 
1995. The assigned lease expired February 28, 1999. 
Pending Board of Supervisors approval of a new lease, Gan 
Haw Enterprises Inc. has continued to lease the property at 
the assigned rental rate on a month-to-month basis under a 
hold-over provision in the assigned lease. 

The proposed lease would allow Gan Haw Enterprises Inc. 
to continue using the City-owned land as a playground and 
paved parking lot with landscaping in connection with 
operation of the Kids' Wonderland Daycare Center. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



30 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Comments: 



1. According to Mr. Gary Dowd of the Public Utilities 
Commission, the proposed rental rate reflects the current 
fair market rent for similar properties in the area. 
Furthermore, Mr. Dowd advises that the subject property 
can only be used by the adjoining property owner, Gan Haw 
Enterprises Inc. 

2. Mr. Dowd advises that whereas the previous lease did 
not contain provisions for a market rental rate re- 
evaluation during the term of the lease or upon assignment 
of the lease, the proposed lease contains such provisions 
which will maximize the property's income-generating 
potential. 

3. The Public Utilities Commission's Bureau of 
Environmental Regulation Management has certified that 
Gan Haw Enterprises Inc.'s continued use of the site has no 
effect on the environment and, therefore, it has a 
categorical exemption from the requirements of the 
California Environmental Quality Act. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Item 11- File 99-1206 



Department: 
Item: 



Description: 



Comments: 



Controller's Office 

Resolution waiving the statute of limitations with 
respect to payment of ten warrants of the City and 
County of San Francisco in the total amount of 
$24,034.67, a legal obligation of the City. 

According to Section 10.181 of the City's 
Administrative Code, a warrant issued by the City 
becomes void one year from the date issued. According 
to Section 10.182 of the Administrative Code, the 
payee of the warrant may present the warrant to the 
Controller for payment up to three years from the date 
that it was rendered invalid or four years from the 
original issue date, and the Controller is authorized to 
draw a new warrant in favor of the payee in the same 
amount as the original warrant. After that time 
period, when the statue of limitations has expired, the 
Controller may no longer pay such a warrant without 
first obtaining approval from the Board of Supervisors. 

The proposed resolution would waive the statute of 
limitations and would authorize the Controller's Office 
to replace ten warrants for Mr. Steven G. Barton, an 
employee in the Mayor's Office of Community 
Development. Of the ten warrants, Mr. John Madden 
of the Controller's Office reports that nine were payroll 
payments and one was a Health Service payment, 
dating from May 17, 1994 through March 26, 1997. 
Together, the ten warrants total $24,034.67. 

1. Mr. Madden reports that Mr. Barton never cashed 
any of these ten City warrants and these original 
warrants have now been cancelled by the Controller's 
Office. 

2. Mr. Madden advises that there are sufficient funds 
in the Warrants Account of the FY 1999-2000 General 
City Responsibilities Budget to pay for one new 
warrant in the amount of $24,034.67 that would be 
reissued to Mr. Barton by the Controller's Office. 



Recommendation: Approve the proposed resolution. 



32 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 



Item 12 -File 99-1207 



Department: 



Item: 



Location: 

Purpose of License 
Amendment: 



Licensor: 



Department of Real Estate (DRE) 
Department of Human Services (DHS) 

Resolution authorizing a First Amendment to a license 
agreement between the City and San Francisco Parking 
(d.b.a. City Park) for a parking lot at Colusa Place and 
Colton Street, for the Department of Human Services, 
providing for retroactivity. 

Colusa Place and Colton Street, San Francisco 



The license amendment would authorize a monthly rate 
increase from $70/parking space to $80/ parking space per 
month (a 14.3 percent increase) for temporary parking 
facilities used as off-street parking for DHS employees. 

San Francisco Parking (d.b.a. City Park) 



Licensee: City and County of San Francisco 

No. of Parking Spaces: 41 parking spaces 

Rate Payable by 

City to San Francisco 

Parking: $3,280 per month (41 parking spaces @$80/space) 



Term of License: 
Source of Funds: 

Description: 



The license is on a month-to-month basis. 

According to Ms. Rose Chow of the Department of Human 
Services, sufficient funds are available in the Department's 
FY 1999-2000 budget to cover the increased cost of the 
parking spaces. 

The Department of Human Services (DHS) currently has a 
License Agreement with City Park for 41 parking spaces at 
Colusa Place and Colton Street to provide off-street parking 
for the social workers at 170 Otis Street required to use 
their vehicles for field work. The License Agreement was 
initially entered into in 1996 when the parking area that 
DHS rented from the State of California at Valencia and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



33 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Stevenson Streets became unavailable due to Caltrans' 
demolition and seismic upgrade work on the Central 
Freeway. DHS expects the Caltrans work to be completed 
in October 1999 and DHS will again be able to lease the 
original parking area at Valencia and Stevenson Streets 
from the State. 

According to Mr. Allen Lucas at the Department of Real 
Estate the current License Agreement between City Park 
and DHS is month-to-month and will be terminated with 
30 days notice, when DHS is able to return to the parking 
area at Valencia and Stevenson Streets. 

According to Mr. Lucas, prior to April 1, 1999, City Park 
notified the Department of Human Services of a $10 rate 
increase, effective April 1, 1999, from $70 per parking space 
($2,870 per month), the amount in effect since October 
1996, to $80 per parking space ($3,280 per month). Mr. 
Lucas states that the Department of Human Services failed 
to notice the increase until a second invoice was sent in 
April. The Department of Real Estate researched the rate 
increase and determined that proper notification was given. 
Therefore, the proposed rate increase is retroactive to April 

1, 1999. 

Comments: 1. According to Ms. Rose Chow of the Department of 

Human Services, DHS has issued 41 parking permits to 
employees at 170 Otis Street who use their vehicles for field 
work at least three times per week. 

2. According to Mr. Allen Lucas of the Department of Real 
Estate, the proposed rental rate of $80 per parking space 
per month represents the fair market value. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

34 



Memo to Finance and Labor Committee 

July 7, 1999 Finance and Labor Committee Meeting 

Recommendation: Approve the proposed resolution. 



[arvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



-).}$H 




City and County of San Francisco 

Meeting Minutes 
^Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B 

Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, July 14, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:10 am 

REGULAR AGENDA 



DOCUMENTS DEPT. 

JUL 1 9 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



990742 [Community Court Funds] 
Supervisor Brown 

Ordinance amending Administrative Code by adding Section 10.1 17-124 to establish Community Courts 
Dispute Resolution Funds. 

(Adds Section 10.117-124.) 

4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

4/21/99, CLERICAL CORRECTION CLERICAL CORRECTION to change Section "10.1 17-123" to "10 1 17-124" (and legislation 

approved as to form by the City Attorney's Office). 

Heard in Committee. Speakers: Supervisor Yee; Carol Leyh. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



990877 [Prevailing Wages for Janitors] 

Supervisors Yee, Ammiano, Bierman 

Ordinance amending Administrative Code by adding Section 21.25-1 to provide that contracts for janitorial 
services must require that any person performing janitorial services thereunder be paid not less than the 
general prevailing wages in private employment for similar work. 

(Fiscal impact; Adds Section 21.25-1.) 

5/3/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/2/1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Tim Paulson, Local 87. Supervisors Ammiano 
and Bierman added as cosponsors. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Primed at 4:31 PM on VIS/99 



Finance and Labor Committee 



Meeting Minutes 



July 14, 1999 



990979 |Airport Concession Bond/Loan Program] 

Resolution authorizing the Airport Commission ("Commission") to increase its line of credit with Wells Fargo 
Bank from $4 Million to $6 Million to provide funding to induce bond companies and financial institutions to 
provide surety bonds and working capital financing to certain disadvantaged business enterprises. (Airport 
Commission) 

5/17/99, RECEIVED AND assii iNEDto Finance and I abor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst, Jon Ballesteros, Airport Commission. 
Supervisor Yee. 

RECOMMENDED by the following vote: 
Ayes: 3 - Bierman, Ammiano, Yee 



991006 |Real Property Lease Amendment! 

Resolution authorizing an amendment to lease real property at 3801 Third Street. Suites 1 10. 220 and 230, for 
the Department of Human Services. (Real F.state Department I 

5/18/99, RECEIVED AND ASSIGNED to Finance an J I ahor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst, Steve Legnitto, Real Estate Department, 
Supervisor Yee. Jan Esbaugh, Human Services Department 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



991032 (Memorandum of Understanding-Local 798-1 nit 1| 
Mayor 

Ordinance adopting and implementing the provision of a Memorandum of I nderstandmg bet* een the San 
Francisco Fire Fighters Union Local 798, IAFF, AFL-CIO for Bargaining I nit 1 and the City jnd County of 
San Francisco for the period July 1, 1999 through June 30, 2001. 

(Fiscal Impact) 

5/24/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
Continued to July 2 I . 1999. 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman. Ammiano 



991033 [Memorandum of Understanding-Local 798, Unit 2| 
Mayor 

Ordinance adopting and implementing the provisions of a Memorandum of Understanding between the San 
Francisco Fire Fighters Union Local 798, IAFF, AFL-CIO for Bargaining Unit 2 and the City and County of 
San Francisco for the period July 1, 1999 through June 30, 2001. 

(Fiscal impact.) 

5/24/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Continued to July 21. 1999. 

CONTINUED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



i in and County of San Francisco 



Primed at 4:31 PM on V1SS99 



Finance and Labor Committee 



Meeting Minutes 



July 14, 1999 



991 073 [Lease of Property) 

Resolution authorizing a 10-year lease of Public Utilities Commission land between the City and County of 
San Francisco and Nextel Communications in Alameda County. (Public Utilities Commission) 
5/27/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Cindy Lee, Land Management, Public 
Utilities Commission. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



991085 [Reserved Funds, Police Department! 

Hearing to consider release of reserved funds, Police Department, in the total amount of $1,654,177 from 
Federal and State grants ($1,274,062 under Resolution 137-9; $380,1 15 under Resolution 351-97), to purchase 
new technology and equipment for the COPS-MORE '96 Program. (Police Department) 
5/25/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Sergeant John Bisordi, Police Department; 
Wayne William Lee, 911 System; Supen'isor Yee; Ed Harrington, Controller. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991 157 [Reserved Funds, Mayor's Office of Community Development) 

Hearing to consider release of reserved funds, Mayor's Office of Community Development (1999 Emergency 
Shelter Grants Program, Resolution 109-99), in the total amount of $52,000 to fund the following MOCD 
homeless projects: Community Awareness and Treatment Services, $45,000; Metropolitan Community 
Foundation, $7,000. (Mayor) 

(Companion to File 991 158.) 

6/9/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Pam David, Director, Mayor's Office of 
Community Development; Henry Uyehara, Community Awareness and Treatment Services; Phillis Nelson, 
Metropolitan Community Foundation; Tom Mayer. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991 1 58 [Reserved Funds, Mayor's Office of Community Development! 

Hearing to consider release of reserved funds, Mayor's Office of Community Development (1999 Community 
Development Block Grant Program, Resolution 90-99), in the total amount of $253,475, to fund the following 
MOCD projects: Mission Education Project, Inc. (MEPI), $45,000; Urban Economic Development 
Corporation, $158,475; and the revolving loan fund servicing, $50,000. (Mayor) 

(Companion to File 991 157.) 

6/9/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Pam David, Mayor's Office of Community 
Development; Rita Avalar, Mission Education Project, Inc.; Commer Marshall, Urban Economic 
Development Corporation; Supervisor Yee; Supervisor Bierman; Supen'isor Ammiano. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:31 PM on 7/I5M9 



Finance and Labor Committee Meeting Minutes July 14, I')')') 



991222 [Approval to spend money to plant a lawn and trees at the Mid-Fmbarcadero Music ( ontourse located 
South of Justin Herman Plaza near the Kerr> Buildingl 

Resolution approving and authorizing the appropriation of up to $984,850 from the Downtown Park Special 
Fund for the proposed enhancements to the Mid-Embarcadero Music Concourse site (Recreation and Parks 
Department) 

6/17/<w, RECEIVED AND ASSIGN! Dto Finance and I ibor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst. Deborah Learner. Recreation and Park 
Department; Ernestine Weiss, Supervisor Bierman. Jim Haas. Supervisor Ammiano 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991272 |Funding for the second round of Affordable Housing and Home Ownership Bonds (Prop. A) issued on 
June 10. 1999| 
Mayor 

Ordinance appropriating $20,000,895 of bond proceeds and bond interest income for implementation of the 
Affordable Housing and Home Ownership Program at the Mayor's Office of Housing, for fiscal year 1999- 
2000. 

6/28/99. RECEIVED AND assii.m Dto Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst. Marsha Rosen. Director, Mayor's Office of 
Housing. Supervisor Ammiano 
RECOMMENDED by the following \ote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991255 |Chronicle Publishing Company | 
Supervisors Leno, Bierman 

Hearing to determine the potential impact of the sale of all or parts of the Chronicle Publishing Company. 
6/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Supervisor Leno. Norman Sullivan. Joe Alioto; Professor Steven Barnett. 
L/C. Berkeley; Belinda Gnsw old. Media Alliance. Bruce Bruggman. Bay Guardian. Carl Hall. President. 
Newspaper Guild: Dennis Mosgafian. President. Local 4. Steven Cornell. President. Small Business Advisory 
Commission; Christen Haffer, President. District Merchants, Rolic Mueller; Ed Rosaro; Gloria LaRiva. 
Supervisor Ammiano; Supervisor Bierman. Supervisor Yee 
CONTINUED TO CALL OF THE CHAIR b> the following Note: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 1 2 34 p.m. 



City and Counts .of San Francisco 4 Printed at 4:31 PM on 7/15/99 



Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



10. P5V 

>/ 14/11 
k 



CITY AND COUNTY 




OF SAN FRANCISCO DOCUMENTS DEP 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



JUL I 4 1933 

SAN FRANCISCO 
PUBLIC LIBRAP^- 



July 9, 1999 
TO: ^Finance and Labor Committee 

FROM: ^Budget Analyst 

SUBJECT: July 14, 1999 Finance and Labor Committee Meeting 
Item 1 - File 99-0742 



Department: 
Item: 



Description: 



Mayor's Office of Criminal Justice 

Ordinance amending Article XIII, Chapter 10, Part 
I of the San Francisco Municipal Code by adding 
Section 10.117-124 to establish Community Courts 
Dispute Resolution Funds. 

The proposed ordinance would establish (1) a 
Bayview Community Court Dispute Resolution 
Fund to receive penalties, fines and other payments 
made to the City by the Bayview Community Court 
and (2) an Oceanview-Merced Ingleside Community 
Court Dispute Resolution Fund to receive penalties, 
fines and other payments made to the City by the 
Oceanview-Merced Ingleside Community Court. In 
addition, each of these two Community Court 
Dispute Resolution Funds would be able to receive 
gifts or grants and all monies allocated to these 
Funds would be expended exclusively to support 
these Community Court Programs and to enhance 
public safety and the quality of life in these two 
respective communities. The proposed ordinance 
would also authorize the Controller to establish 
additional Community Court Dispute Resolution 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Funds to receive monies from other Community 
Courts. 

In accordance with the proposed ordinance, the 
Director of the Mayor's Criminal Justice Council, in 
consultation with the Police Chief, District 
Attorney, Chief Executive Officer of the Superior 
Courts and the Controller would establish 
guidelines and then the Controller could disburse 
these Funds, in accordance with such guidelines. 

The proposed ordinance also states that the City 
may not recover any of the costs to administer 
these Funds. Interest earned from Fund balances of 
more than $50,000 would accrue to the Funds, 
while interest earned from Fund balances of less 
than $50,000 would accrue to the City's General 
Fund. 

Comments: 1. According to Mr. Eugene Clendinen of the 

Mayor's Office, in November of 1998, the City 
created two Community Courts, one in the Bayview 
Community and one in the Oceanview-Merced 
Ingleside Community, as a pilot program to 
address minor infractions and minor misdemeanors 
occurring in these communities, that are diverted 
from the Trial Courts. Mr. Clendinen reports that 
these two Community Courts were established 
through an initial $50,000 Federal law enforcement 
block grant and have been continued with a 
$150,000 Federal Department of Justice grant. Ms. 
Amy Ackerman of the City Attorney's Office 
advises that the two Community Courts assess 
community service penalties as well as financial 
penalties and fines to persons appearing before 
these Community Courts for various infractions 
and minor misdemeanors, such as graffiti and 
gambling. Under the proposed ordinance, such 
financial penalties, fines and payments, as well as 
other gifts or grants to these Community Courts 
would be deposited into designated Special Funds 
established bv the Controller's Office. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

2. Mr. Clendinen reports that a provision is 
included in the proposed ordinance to enable the 
Controller to establish additional Community 
Court Dispute Resolution Special Funds because, 
depending on the success of the current pilot 
program, additional Community Courts may be 
established in the future. 

3. The Budget Analyst notes that the expenditures 
made from the proceeds in the proposed Special 
Funds would not be subject to appropriation 
approval by the Board of Supervisors. 

4. Mr. Ed Harrington, the City Controller reports 
that as of the writing of this report, he has not 
reviewed the proposed ordinance. However, Mr. 
Harrington advises that the Controller's Office is 
discouraging the creation of any additional Special 
Funds in the City, and is instead requesting that if 
Departments wish to account for certain monies 
separately, that such a request be made to the 
Controller's Office. In addition, the Controller's 
Office could not identify the amount of monies that 
are currently being collected by the two Community 
Courts or where such funds are being deposited. 

5. The Budget Analyst has requested information 
regarding how much penalties, fees, fines or other 
revenues are currently being collected, where such 
funds are being deposited, and what are these 
funds currently being used for. As of the writing of 
this report, such information was not available 
from Mr. Clendinen of the Mayor's Office of 
Criminal Justice or Sergeant John Bisordi of the 
Police Department. 

Recommendation: Continue the proposed ordinance to the Call of the 

Chair, pending review by the Controller's Office of 
the need to create two additional Special Funds 
and an accounting of the existing funds that are 
being collected by the Community Courts. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Item 2 - 99-0877 



Department: 



Item: 



Description: 



Civil Service Commission 
Department of Human Services (DHR) 

Ordinance amending Part I of the Administrative Code by- 
adding Section 21.25-1 to require private employers to 
pay their employees performing janitorial services, under 
City contracts of $10,000 or more, not less than the 
general prevailing rate of wages. 

The proposed ordinance would amend Part I of the 
A dmi nistrative Code to add Section 21.25-1, a new 
section. Section 21.25-1 would require private employers 
to pay their employees performing janitorial services, 
under City contracts of $10,000 or more, not less than the 
general prevailing rate of wages 1 . However, the proposed 
ordinance would not apply to City contracts where the 
janitorial services are to be performed by (1) a non-profit 
organization that provides job training and work 
experience for disadvantaged individuals in need of such 
training and (2) any organization employing fewer than 
10 employees. 

According to the proposed ordinance, the Board of 
Supervisors would be required to fix and determine, on an 
annual basis, the general prevailing wage rates as paid by 
private employers to janitorial service workers in San 
Francisco. To assist the Board of Supervisors in 
determination of these wage rates, the Civil Service 
Commission would be required to furnish to the Board of 
Supervisors, on an annual basis, data as to the general 
prevailing rate of wages as paid by private employers to 
janitorial service workers in San Francisco. In 
determining prevailing wage rates, the Board of 
Supervisors is not limited to the data submitted by the 
Civil Service Commission but may consider such other 
information on the subject as it may deem proper. 

The provisions of the proposed ordinance would become 
effective 30 days after the date that this proposed 
ordinance is approved by the Board of Supervisors. 



1 A prevailing rate of wage is the rate of compensation being paid to a majority of workers engaged in specified 
category of craft or labor. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Comment: The proposed ordinance contains a provision that states 

when private employers deliberately fail to pay employees 
performing janitorial services under City contracts the 
general prevailing rate of wages, the City may (a) fine 
those private employers an amount not to exceed 10 
percent of the total contract amount and/or (b) terminate 
the contracts. Any fines collected under this provision 
would be deposited in the fund out of which the City 
contracts are paid. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Item 3 - 99-0979 

Department: 

Item: 



Description: 



Airport Commission 

Resolution authorizing the Airport Commission to 
increase the Airport Surety Bond Program line of credit 
with Wells Fargo Bank from $4 million to $6 million to 
provide funding for bond companies and financial 
institutions to provide surety bonds and working capital 
financing to disadvantaged business enterprises. 

In December of 1994, the Airport Commission adopted 
Resolution 94-0267, approving implementation of the 
Airport Surety Bond Program. The purpose of the 
Program is to assist minority-owned, women-owned and 
small businesses (MBE/WBE/SBEs) in obtaining (a) 
surety bonds, which are financial instruments used to 
guarantee the completion of construction projects, and (b) 
working capital loans. The Airport Surety Bond Program 
has served as a model program for the City and County of 
San Francisco by assisting MBE/WBE/SBEs, who have 
been awarded Airport construction contracts, in obtaining 
surety bonds and working capital loans. Without the 
assistance of the Program, these businesses may not have 
otherwise obtained the surety bond or working capital 
loan required by the Airport to perform construction 
projects. 

The Program assists MBE/WBE/SBEs in obtaining surety 
bonds and working capital loans by (a) providing the 
qualified MBE/WBE/SBEs with training and assistance in 
obtaining bonds and loans, and (b) guaranteeing to the 
commercial surety or loan company that the Airport will 
repay a percentage of the surety bond or the loan if the 
contractor defaults. The Airport has established a $4 
million line of credit with Wells Fargo Bank, and uses 
funds from the line of credit as collateral to surety and 
loan companies for the purpose of guaranteeing that 
surety bonds and working capital loans for 
MBE/WBE/SBE contractors will be paid in the event that 
the contractor defaults. 

According to Mr. Peter Nardoza of the Airport, the Airport 
Surety Bond Program has assisted 40 MBE/WBE/SBEs in 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



successfully bidding for and receiving Airport construction 
contract awards. Mr. Nardoza states that there have been 
no loan defaults or claims on these loans and bonds. 

The proposed resolution would authorize the Airport to 
increase the present line of credit for the Airport Surety 
Bond Program with Wells Fargo Bank from $4 million to 
$6 million, an increase of $2 million or 50%, to be used to 
guarantee additional bonds and loans for 
MBE/WBE/SBEs. Such authorization would allow the 
Airport to expand the Airport Surety Bond Program to 
include a Concession Bond and Loan Program. The 
Concession Bond and Loan program would assist 
additional MBE/WBE/SBEs in bidding on and obtaining 
Airport leases to operate concessions, by providing 
assistance in obtaining (a) surety bonds, which are 
required by the Airport to guarantee concessionaire's 
lease payments, and (b) working capital loans. 



Comments: 1. According to Mr. Michael Johnson of Mernwether and 

Williams Insurance Services, the firm that administers 
the Airport Surety Bond Program on behalf of the Airport, 
the Airport issues a Letter of Credit, drawn on the Wells 
Fargo Bank line of credit, to the surety or loan company 
to serve as collateral for the surety bond or working 
capital loan obtained by the MBEAVBE/SBE contractor 
participating in the Program. The Letter of Credit is held 
in escrow by the surety or loan company until completion 
of the Airport construction project and then returned to 
the Wells Fargo line of credit. In the event that the 
contractor defaults on the surety bond or the construction 
loan, the Letter of Credit is used to reimburse the surety 
or loan company a percentage for their losses, and the 
contractor is liable to the surety or loan company for any 
remaining monies due them. 

2. Attachment I, provided by Merriwether and Williams 
Insurance Services, is summary of the Airport Surety 
Bond Program activity to date. 

• Attachment 1(a) is a memorandum summarizing the 
surety companies and banks that participate in the 
Airport Surety Bond Program. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



• Attachment 1(b) is a summary of MBE/WBE/SBE 
contractors that have participated in the Program 
since January 1995 and have received Letters of 
Credit from Wells Fargo Bank to guarantee surety 
bonds. 

• Attachment 1(c) is a summary of MBE/WBE/SBE 
contractors that have participated in the Program 
since January 1995 and have received Letters of 
Credit from Wells Fargo Bank to guarantee working 
capital loans. 

3. Attachment II is a list of MBE/WBE/SBE contractors 
who currently have Airport construction contract awards 
and have active Letters of Credit from Wells Fargo Bank 
to guarantee either surety bonds or working capital 
loans. Currently, 14 MBE/WBE/SBEs have active Letters 
of Credit, totaling $2,715,920. The remaining balance in 
the Wells Fargo Bank line of credit is $1,284,080 
($4,000,000 minus $2,715,920). 

4. The Airport has contracted with Merriwether and 
Williams to administer the Program for a monthly charge 
of $12,500. Ms. Sandra Crumpler of the Airport advises 
that expanding the current Program to include the 
Concession Bond and Loan Program and increasing the 
Airport's line of credit with Wells Fargo Bank will not 
increase the administrative fees paid by the Airport. 

5. Ms. Crumpler advises that the Airport contracts with 
outside accounting firms to assist MBEAVBE/SBE 
contractors enrolled in the Airport Surety Bond Program 
in compiling the financial reports that are required to 
qualify for surety bonds and working capital loans, at a 
cost of up to $3,200 per MBE/WBE/SBE contractor. 
Expanding the program to include additional 
MBE/WBE/SBEs who are awarded concession leases by 
the Airport will increase the number of MBE/WBE/SBEs 
that receive assistance in compiling financial reports from 
outside accounting firms by 8 to 10 MBE/WBE/SBEs per 
year, requiring the Airport to pay an additional $25,600 to 
$32,000 per year to outside accounting firms. Ms. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Crumpler states that the Airport has sufficient funds in 
its Capital Project Funds to cover such increased costs. 



Recommendation: Approval of the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Lft SyJUL. 7. 1 999e. 3:40?MliamsADMIN>vcs.;415 9Sfl 4A21; 



Jul-7-99 15:37; 



fP. 3i 



July 7, 1999 

Ms Sandra Crumpter 

MBE/WBE Outreach Office 

San Frandsco Intamational Airport 

P.O. Box 8097 

San Francisco. CA 94128-8097 

RE: History of the Program to date 

Dear Sandra: 




MfcRRrwiTHZR 
fc WILLIAMS 
iwaj*A»*7 evicts 



Attachment 1(a) 



VIA FACSIMILE 



Please Find endosed the following activity reports: 

1. SFiA Surety Bond Activity 

2. SFIA Loan Activity 

3. Program Balance Sheet 

The Surety Companies used to date are as follows: 

1 . Arnwest Surety Insurance Company 

2. Midwest Indemnity 

3. Star Insurance Company (now Century Surety Underwriters) 

4. Mountbatten Surety Company, Inc. 

The Banks used to date are as foHows: 

1 . The Mechanics Bank 

2. Sumitomo Bank (now California Bank and Trust) 

3. Mid-Pentnsute Bank 

4. Pacific Bank 

5. Peninsula Bank 

6. First National Bank of Northern California 

7. Bank of the Orient 

Working capita* monies are loaned to the contractor by one or the roaowing examples: 

1. One line of credit with two facilities wt&ca the tank is abte to separate the 
monies provided to the cBer* for Airport work. 

2. A Line of Credit backed by. Accounts Receivables where a borrowing based 
certific a te with attached invoice is used to document or track the use of the 
monies. 

Loan repayment foeows bank poficy. Simurtaneousiy, the Surety Bond Program tracks ban 
repayment via Coeateral Status Reports. 

If you have and questions or concama regarding this matter, ptease do not hesitate to call. 

Sincerely, 




INHttNU •1ORIII/C0N1UL1ANTS 

417 MONTGOMERY SlIELT. SECOND UOOII 
SAN FRANCISCO. CALIFORNIA 94104 
4I.S-.M*kW99/ fa * 4 15 964 ■••♦JJ.EWAH. MERRIWILUJ^OLCOM 






Sent 3y JUL 7. 1999* 3 : 4 lPMLla-* ADMINives. ;*1S 986 4421; 



Attachment- Kb) 




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Attachment II 



SAN FRANCISCO INTERNATIONAL AIRPORT 
SURETY BOND PROGRAM 



GENERAL FUND 



PROGRAM BALANCE SHEET 

As of July 1999 



Transaction 
Date 



Contractor 



Amount 







Protram Batanca 




$4,000,000.00 


Feb-96 


Ottver Corwrucaon 


($100,000.00) 


Nov-06 


WmardTorg 


($250,000,001 


Jun-57 


Mandaitan Construction 


{S100.OGO.00) 


Aug-97 


BaasBedric 


f550.OCO.00) 


Aua-97 


m • A r\ . || J 1 


(560.000.00) 


Afccrt Pavwwit Mancncs 


Od-37 


MooMns Haabna & Cooflno 


($750,000.00) 


Oct-87 


7«nc*r IraiJabon 


($20,000.00) 


Acr-OB 


JCMst* SoedaJiats 


($100,000.00) 


Mav-ae 


Fsb Barrier 


($192,000.00) 


Msv 00 


Silver Giass & Mirror 


($103,920.00) 


Sao-98 


MH Corafrudtcn Management 


($12S,000.00) 


Nov-88 


MfflanTbornpeon Constructors 


($375,000.00) 


Jan-99 


Otvaa Construction 


($250,000.00) 


Mar-99 


LTM Construction 


($250,000.00) 






■ 




REMAINING BALANCE 81,284.280.00 



7/7/90 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Item 4 - File 99-1006 
Department: 

Item: 

Location: 
Purpose of Lease: 

Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 



Additional 
Annual Cost: 

Term of Lease: 



Utilities and 

Janitorial 

Services: 



Department of Human Services (DHS) 
Department of Real Estate (DRE) 

Resolution authorizing an amendment to an existing lease of 
property at 3801 Third Street for the Department of Human 
Services (DHS) 

3801 Third Street, Suite 210 

Family Meetings Center to be operated by the DHS, Family 
and Children's Services (FCS) Division. 

Bayview Plaza, LLC 

City and County of San Francisco 



DHS has an existing lease at 3801 Third Street consisting of 
7,085 square feet at approximately $1,352 per square foot per 
month, for a total of $9,578.25 per month or $114,939 
annually. The proposed lease amendment would provide an 
additional 630 square feet at approximately $1.50 per square 
foot per month, for an additional rental cost of $945 per 
month. 



$11,340 

The existing five-year lease expires June 30, 2003. The 
proposed lease amendment would become effective upon 
approval of the Board of Supervisors and the Mayor and 
would also expire on June 30, 2003 (approximately four 
years). 



Under the existing lease, the City pays all costs for utilities 
and janitorial services, with the exception of separately 
metered electrical services, which is the responsibility of the 
lessor. The proposed lease amendment would not change 
this arrangement for the provision of utilities and janitorial 
services. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Right of Renewal: None. 



Source of Funds: 



Description: 



37% Federal Grant Funds, 27% State Grant Funds and 36% 
General Fund included in DHS's FY 1999-2000 budget. 

The Department of Human Services (DHS) currently has an 
existing lease for Suites 110, 220 and 230 at 3801 Third 
Street. Ms. Rose Chow of DHS reports that these leased 
premises are occupied by a total of 31 City employees who 
handle the Family and Children's Services (FCS) Program 
for families and children in the Bayview Hunters Point area, 
as part of DHS's effort to be located in the community where 
its clients live. 

Suite 110 consists of 3,135 square feet and is occupied by a 
total of 21 FCS staff persons, including (a) the Emergency 
Response, (b) Court Dependency, (c) the Child Health and 
Disability Prevention Program, and (d) the Family 
Preservation Unit and the Kinship Unit. Suites 220 and 230 
consist of 1,977 and 1,973 square feet respectively and are 
occupied by the Family Services Unit, consisting of 10 FCS 
staff persons. Therefore, these 31 City employees occupy a 
total of 7,085 square feet at 3801 Third Street for an average 
of 228 square feet per employee. 

The proposed resolution would authorize an amendment to 
this existing lease discussed above in order to provide an 
additional 630 square feet of space in Suite 210 at 3801 
Third Street for a Family Meetings Center, where families, 
relatives, friends and community members can meet to 
develop plans to keep children safe at home or in temporary 
placement. Therefore, if the proposed resolution is approved, 
DHS would occupy a total of 7,715 square feet of space (7,085 
plus 630) at 3801 Third Street. However, since the 
additional 630 square feet would be used as a Family 
Meetings Center, rather than for additional employee 
workspace, the existing 31 City employees at 3801 Third 
Street would continue to occupy an average of 228 square 
feet per employee. 

As previously noted, the lease rate for this additional 630 
square feet of space is approximately SI. 50 per square foot 
per month, for an additional rental cost of $945 per month or 
$11,340 annually. In addition, the proposed lease 
amendment would become effective upon approval of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Board of Supervisors and the Mayor and would expire on 
June 30, 2003. The need for the subject additional space is 
explained in the attached memorandum, provided by Ms. 
Chow. 

Comments: 1. If the proposed lease amendment is approved, the total 

annual cost of the City's lease at 3801 Third Street would 
increase by $11,340 from $114,939 to $126,279. 

2. Ms. Claudine Venegas of the Department of Real Estate 
reports that the proposed rent of $1.50 per square foot 
represents fair market value. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



JUL-09-1999 09=29 



Attachment 



City and County of San Francisco 



Department of Human Services 




Will Ughtbourne 
Executive Director 

Deputy Directors 

Bill Bettencourt 

Jim Buick 

Sally Kipper 



The Family Meeting Center 
3801 Third Street, Suite 210 



Family and Children's Services has over the past year embarked en a project to partner 
with other City Agencies and Community Based Organizations to change the way we 
have traditionally provided services This effort has been focused on tne Southeast 
corridor of the city. The Family Meeting Center is a continuation of that effort. Tne 
Ruth E. Smith Demonstration Project is San Francisco's five year program approved by 
the State to use fostercare funds to provide preventive services to families, and 
involves family conferencing en all cases referred to the project. The purpose to keep 
children safe, at home or with family. Family conferences affords the opportunity for 
families to come together and to develop plans to keep children safe. 

It is anticipated that up to 400 families will be served during this period. 

The Center is not an 8:00 to 5:00 operation it will be available evenings and weekends 
to meet the individual needs of the families. 

The Center will also be used beginning this fall by Judge Donna Hitchens to hold 
review hearings on dependent children who's families reside in this area. This will be 
the first time such heanngs will be heid outside of the Juvenile Court and is a further 
effort to bring services to the community. 



(415) 557-5000 



P.O. Box 7988 



San Francisco, California 94120 
TOTfiL P. 02 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Items 5 and 6 - Files 99-1032 and 1033 

Departments: Department of Human Resources 

Fire Department 

Items: Ordinance adopting and implementing tbe provisions 

of a Memorandum of Understanding (MOU) between 
the San Francisco Fire Fighters Union Local 798, 
LADD, AFL-CIO for Bargaining Unit 1 and the City 
and County of San Francisco for the two-year period 
July 1, 1999 through June 30, 2001 (File 99-1032). 

Ordinance adopting and implementing the provisions 
of a Memorandum of Understanding (MOU) between 
the San Francisco Fire Fighters Union Local 798, 
IAFF, AFL-CIO for Bargaining Unit 2 and the City 
and County of San Francisco for the two-year period 
July 1, 1999 through June 30, 2001. 

Description: In 1995, the Board of Supervisors approved an MOU 

with the Firefighters Union Local 798, Bargaining 
Units 1 and 2 for the four-year period from July 1, 
1995 through June 30, 1999. Bargaining Unit 1 covers 
the following 17 uniform classifications, comprising a 
total of 1,517 employees: 

H-2 Firefighter 

H-3 Firefighter Paramedic 

H-4 Inspector, Fire Prevention & Public Safety 

H-6 Investigator, Bureau of Fire Prevention 

H-10 Chiefs Operator 

H-16 Technical Training Specialist 

H-18 Coordinator of Community Services 

H-19 Operations-Training Supervisor, Airport 

H-20 Lieutenant 

H-22 Lieutenant, Fire Prevention & Public Safety 

H-24 Lieutenant, Fire Investigations 

H-28 Lieutenant, Training 

H-29 Special Services Officer 

H-30 Captain 

H-32 Captain, Fire Prevention & Public Safety 

H-33 Captain, Emergency Medical Services 

H-39 Captain, Training 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Bargaining Unit 2 covers the following five uniform 
classifications, comprising a total of 61 employees: 

H-40 Battalion Chief 

H-43 EMS Section Chief 

H-50 Assistant Chief 

H-110 Marine Engineer of Fire Boats 

H-120 Pilot of Fire Boat 

The proposed two MOUs would extend the prior MOUs 
for the two-year term from July 1, 1999 through June 
30, 2001 for Bargaining Units 1 and 2. 

The major changes of the two new subject MOUs from 
the prior MOUs, which expired on June 30, 1999, 
include the following: 

• Salary Increases: A 5.5 percent increase in the base 
salaries effective July 1, 1999 and an additional 5.5 
percent increase in base salaries effective July 1, 
2000, for total salary increases of 11 percent over 
the two-year term of these MOUs. Such increases 
in base salaries for the Fire Department are 
consistent with the salary increases approved by 
the Board of Supervisors for Police Officers under a 
MOU with the Police Officers Association. 

• Working out of Classification Pav: Fire suppression 
employees would be required to perform the full 
range of duties of the higher rank in order to 
receive higher pay for working out of classification, 
instead of the prior practice of simply accepting 
responsibility and carrying out certain duties of the 
higher classification. In addition, although no 
criteria currently exists for non-suppression 
employees to receive the pay of a higher rank, the 
proposed MOU requires that the assignment to a 
higher rank must be in writing, the higher position' 
must be an authorized budgeted position, the 
employee must perform the higher ranked duties 
for longer than ten consecutive workdays and, 
consistent with the Department of Human 
Resources guidelines, there would be a six-month 
limitation on such assignments. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



?n 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Holiday Pav: Under the prior MOUs, every Fire 
Suppression employee received time and one-half 
for each of the 11 holidays, whether the employee 
works on that specific holiday or not. The 
Department of Human Resources estimates that 
this additional Holiday Overtime pay resulted in 
an increase of these employees' base salaries of 
eight percent. Under the proposed MOUs, all Fire 
Suppression employees would receive a six percent 
increase in their overall base salary. Although this 
constitutes a reduction of two percent, the six 
percent increase in base salary, in lieu of time and 
one-half for each of 11 holidays, is paid even if the 
Fire Suppression employees do not work on any of 
the 11 holidays. However, Ms. Villagomez reports 
that this Holiday Pay premium is unique for Fire 
Suppression employees because other City 
employees have either the holiday or another day 
off as a holiday benefit, which Fire Suppression 
employees do not receive and that this provision is 
consistent with Fire Department holiday pay 
practices in other jurisdictions. If a Fire 
Suppression employee calls in sick on a holiday 
when that employee is scheduled to work, and is 
therefore not able to work on that holiday, the 
employee would not receive the six percent 
premium just for that specific biweekly pay period. 

• Education Incentive Pav Premiums: Previously, 
qualifying employees received a specific biweekly 
education incentive pay schedule according to 
employee classification, if they completed an 
Associate's degree in Fire Science or related field or 
a Bachelor's degree. The Department of Human 
Resources estimates that approximately 127, or 
eight percent of employees received this premium 
at a cost of slightly less than one percent of 
salaries. Effective July 1, 1999, a three percent 
incentive reward would be paid to all Local 798 
employees with either (a) an Associate's degree in 
Fire Science or a related field, (b) a Bachelor's 
degree or (c) ten years of service with the Fire 
Department and completion of Fire Department 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



21 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



annual training requirements. An additional three 
percent incentive reward would be added effective 
July 1, 2000, for a total of six percent education 
incentive premium. Although currently, additional 
education incentive pay is not considered part of an 
employee's salary when computing retirement 
benefits, the proposed incentive payments would be 
considered part of an employee's base salary for 
purposes of computing future retirement benefits 
and contributions. Ms. Debra Ward of the Fire 
Department estimates that given the additional 
provision to allow employees with at least ten years 
of service to receive this additional benefit will 
result in approximately 75 percent of the uniformed 
personnel to receive this additional pay premium. 

Administrative Assignment Pav Premiums: Instead 
of specific pay schedules which previously ranged 
from $171 biweekly for Firefighters to $227 for 
Captains, all field employees in Bargaining Unit 1 
that are assigned by the Chief of the Department to 
perform administrative assignments for a 40-hour 
work week will receive an additional $175 
biweekly. Similarly, instead of specific pay 
schedules which previously ranged from $275 for 
Battalion Chiefs to $316 for Assistant Chiefs 
biweekly, all field employees in Bargaining Unit 2 
that are assigned by the Chief of the Department to 
perform administrative assignments for a 40-hour 
work week will receive an additional $225 
biweekly. Under the prior MOUs, these 
administrative assignment pay schedules increased 
with each salary increase, but under the proposed 
MOU, the new standard pay rates would remain 
the same, regardless of salary changes, such that 
these proposed changes should result in savings for 
the City. 

> Paramedic Cross-training Pav Premiums: L'nder 
both the prior and proposed MOUs, the difference 
in salary between an H-2 Firefighter and an H-3 
Firefighter/Paramedic is approximately 15 percent. 
Effective July 1, 1999, employees enrolled in the 
Paramedic cross-training program will receive a 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



?.?. 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



new tbree percent premium, whicb will increase to 
a five percent premium after completion of the 
initial six-month training requirements and 
continued participation in the training program. 
Under the prior MOU, there was no additional 
compensation for the Paramedic cross-training 
period. 

Hours: A change in the definition of a Fire 
Suppression workday from either 8 hours or 16 
hours to a standard 12 hours. Ms. Villagomez 
reports that this change is intended to reconcile the 
number of actual hours worked with the existing 
pay practices within the Fire Department. 

Family Care Leave: Under the prior MOU, there 
was a more limited child care leave. Under the 
proposed MOU, there would be up to one year of 
unpaid Family Care Leave for all employees with 
one or more years of service. During such time, the 
City would continue to provide health and dental 
benefits for employees and their dependents. In 
addition, female firefighters returning from 
maternity leave may work a modified duty 
assignment up to six weeks, as determined 
appropriate by the Department's physician. 

i Health Benefits: Full medical premium coverage 
for employees with no dependents and up to $225 
or 75 percent of the cost of Kaiser's Medical 
premium costs, whichever is greater, for each 
employee plus two dependents. The Department of 
Human Resources estimates that as of July 1, 
1999, this provision will result in an increase of $23 
per month per dependent employee, since 
previously, the MOUs provided that the City 
contributed a flat $225 per month towards 
dependent health coverage. In addition, except for 
unpaid Family Care Leave, the City will cease to 
pay for health coverage after 12 weeks of unpaid 
leave status. 

» Wellness Program: Effective July 1, 1999, once a 
core account of 360 hours of sick leave has been 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



accrued for each employee, suppression employees 
can cash out 60 hours and non-suppression 
employees can cash out 50 hours of sick leave 
hours. Previously, there was no provision for 
cashing out sick leave hours and employees can 
accumulate up to 1,272 hours of sick leave. The 
Department of Human Resources notes that this 
provision should result in a significant reduction in 
overtime expenditures since overtime is required to 
backfill positions to cover for Firefighters who are 
out sick. However, the Department of Human 
Resources advises that there are no assurances 
that such reductions in overtime will actually be 
achieved. 

Radios: A new provision which would require the 
City to provide and maintain each truck company 
with two portable radios and each member of a 
rescue squad with one such radio while on duty. 
Previously, no radio provision existed in the MOUs. 
Ms. Alice Villagomez of the Department of Human 
Resources reports that this new provision is 
consistent with the planned switchover to the new 
911 system. 

Health and Safetv: Voluntary prostrate and breast 
cancer screening would be offered and paid for by 
the Fire Department to males and females over 40 
years of age through the Department's Health 
Check Program. Previously, no such screening 
program existed in the MOU. 

i Employee Assistance Program: Requires 
continuation of a minimum of two full-time 
employees in the Stress L'nit Program and 
coordination with the City's Employee Assistance 
Program. Previously, the Stress L'nit Program had 
three full-time employees. 

• Modified Dutv Assignments: New provisions for the 
way modified duty assignments are determined and 
evaluated based on job injuries and illnesses. The 
proposed MOUs require closer monitoring. 
evaluation every 30 days and temporary 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



24 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

assignments limited to a maximum of one year. If 
an employee is injured while earning acting 
assignment pay of a higher rank, that employee 
may receive compensation of the higher rank if 
injured after serving more than ten days and 
modified duty at the higher rank is limited to no 
more than 30 days. Previously, the modified duty 
assignment provisions did not include 
responsibilities for monitoring and evaluation. 

• Employee Training and Reimbursement: City will 
allocate $8,000 per year for the next two years of 
this MOU, or a total of $16,000, for tuition 
reimbursement for employees and such funds can 
be carried forward if not used in one fiscal year. 
Under the prior MOUs, the City allocated $5,000 in 
FY 1997-98 and $8,000 in FY 1998-99. 

• Pre-retirement Seminars : Agreement to offer pre- 
retirement planning seminars on a semi-annual 
basis, with tuition reimbursement provided 
through the $8,000 annual allocation noted above. 
Previously, the MOU did not provide for such 
seminars. 

Comments: 1. Ms. Villagomez reports that these two proposed 

MOUs would only extend for two years, instead of four 
years as the previous Local 798, Bargaining Units 1 
and 2 MOUs did, to coincide with the expiration of the 
two other major public safety employee MOUs (i.e., 
Police and Sheriff), which also extend through June 
30, 2001. The proposed MOUs also provide for the City 
and Local 798 to agree on a negotiation schedule for 
the next MOUs by the end of December of 2000, or six 
months prior to the expiration of the proposed MOUs. 

2. The above described provisions of the proposed two 
MOUs relate to the major financial changes from the 
two prior MOUs. However, it should be noted that 
there are various other provisions in the two subject 
MOUs, including: (1) prohibiting discrimination based 
on gender identity, (2) the Fire Department's 
agreement to post union notices, when such notices are 
submitted in writing 72 hours in advance, (3) 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



employees may continue to receive compensatory time 
off instead of paid overtime, but now it will require the 
approval of the Chief of the Fire Department, (4) 
adverse comments may not be placed in an employee's 
personnel file without that employee's notification, (5) 
new grievance procedures, and (6) an Intermittent 
Daily Vacation provision which codifies existing 
practices for using accrued vacation time. 

3. In addition, the Bargaining Unit 1 MOU provides 
that if the City creates any new uniformed Fire 
Department classification below the rank of Battalion 
Chief during the term of this agreement, those new 
classifications will automatically be included in 
Bargaining Unit 1 and covered by the terms of that 
agreement. Previously, the MOU did not specify future 
creation of new classifications. 

Another new provision in the Bargaining Unit 1 MOU 
is the Agency Shop provision which. Ms. Villagomez 
advises, is enabling legislation to permit a fair share 
service fee to be paid by those uniform employees 
within the Fire Department who are not members of 
Local 798, but who receive benefits negotiated by 
Local 798. Ms. Villagomez notes that membership in 
Local 798 is voluntary. Although the amount of such 
fees has not yet been determined. Ms. Villagomez 
reports that the Controller would deduct such fees 
from the employee's paychecks and remit such fees to 
Local 798. Ms. Villagomez further advises that the 
City receives an administrative fee from Local 798 to 
cover such payroll deductions. 

4. Another provision of the proposed MOUs which is 
particularly noteworthy regards the Fire Department's 
vacation accrual. The proposed MOU states that the 
City, through the Human Resources Department and 
Local 798 will meet within 30 days of the effective date 
of these MOUs to develop a plan that is consistent 
with Administrative Code Sections 16.11 and 16.12, 
which would become effective July 1, 2000. 
Administrative Code Section 16.12 states that the 
maximum accrual of vacation for all City employees is 
400 hours. However, Administrative Code Section 
16.11 acknowledges that uniform personnel in the Fire 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Department had previously accrued more than the 400 
maximum number of hours and required the Fire 
Department to bring the Department into compliance 
with the rest of the City by "no later than December 
31, 1989". 

Ms. Villagomez reports that the new MOUs provisions 
were included because Fire Department personnel 
have still been permitted to accrue up to 600 hours of 
vacation time, although the City's Administrative 
Code was very clear in specifically limiting accrued 
vacation time of up to 400 hours and addressing the 
previous Fire Department's exception. The Budget 
Analyst seriously questions why the Fire Department 
has not been in compliance with the provisions of the 
City's Administrative Code for the past ten years and 
why this provision is being included in this MOU, to 
give the Fire Department even more time to bring the 
Fire Department into compliance, when the City's 
Administrative Code Sections 16.11 specifically 
addressed this issue and stated that such compliance 
would be completed "no later than December 31, 
1989". Furthermore, approval of this new MOU 
provision would mean that the Board of Supervisors 
would have no impact as to the final results of the 
vacation accrual plan which would be decided by the 
Department of Human Resources and Local 798 30 
days subsequent to the Board of Supervisors vote on 
these proposed MOUs. 

5. Despite the well-documented problems with Fire 
Department overtime, it should also be noted that 
there are no changes to the overtime compensation 
section of the proposed two MOUs, except the inclusion 
that compensation will be at one and one-half times 
the base hourly rate, except as otherwise required by 
the Federal Labor Standards Act. Previously, the 
MOUs simply stated that overtime compensation 
would be at one and one-half times the base hourly 
rate. The Budget Analyst also notes that the staffing 
requirements for the Chiefs Operators would not 
change under the proposed MOUs. 

Furthermore, the Budget Analyst notes that 
Education Incentive Pay Premiums, which are 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



27 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



proposed to increase from a specific biweekly pay 
amount for each classification to a three percent 
increase as of July 1, 1999 and another three percent 
increase, for a total of six percent, as of July 1, 2000 
result in an increase at an accelerating rate, since 
such premiums will now be based on a percentage of 
salaries rather than a fixed amount. Furthermore, 
including such Pay Premiums in computing retirement 
benefits will further increase the Fire Department's 
retirement costs for the City. Ms. Villagomez reports 
that such policies are comparable to those included in 
the current Police Officers Association MOU. 

In addition to the numerous changes in the proposed 
MOUs identified above, the Budget Analyst notes, and 
Ms. Villagomez acknowledges that there are two 
additional enhancements included in the proposed 
MOUs for the uniformed Fire Department employees 
than the existing Police MOUs currently provide for 
uniformed Police Department employees. As 
previously noted, one of these enhancements is the 
improved City paid health benefits for 75 percent of 
Kaiser Medical premiums for each employee plus two 
dependents, which Police Officers do not receive. As 
previously noted, the Fire Department MOUs also 
provide Administrative Assignment Pay Premiums, 
which the Police Officers do not receive. 

6. In summary, under the proposed MOU, a H-2 
Firefighter at the current maximum annual salary of 
$56,697 would receive (a) two additional 5.5 percent 
salary increases on July 1, 1999 and July 1, 2000, for a 
total of 11 percent; and (b) Holiday Pay of six percent 
of the base salary. Approximately 75 percent of the 
employees would also receive the Education Incentive 
Pay Premiums of three percent on July 1, 1999 and 
another three percent on July 1. 2000, for a total of six 
percent, for a total additional compounded salary 
increase of 25.2 percent, or $14,288, resulting in a 
total annual base salary of $70,985 beginning July 1. 
2000. In addition, H-2 Firefighters are likely to receive 
additional compensation for working any overtime 
hours, paid at time and one-half, and to receive other 
premium pay provisions, such as Administrative 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Assignment Pay, or Paramedic Cross-Training Pay, 
which are included in the proposed MOUs. 

7. The additional cost of these proposed MOUs will be 
funded from the Salary and Benefits Reserve included 
in the FY 1999-2000 recommended budget. As of the 
writing of this report, the Controller has not completed 
a final cost estimate for these proposed MOUs. 
Consequently, Mr. Matthew Hymel, Mayor's Director 
of Finance has requested continuation of the two 
proposed ordinances for one week. 

Recommendation: Continue the proposed ordinances as recommended by 
the Mayor's Director of Finance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 
July 14, 1999 Finance and Labor Committee 

Item 7 - File 99-1073 



Department: 
Item: 



Location: 



San Francisco Public Utilities Commission (PUC) 

Resolution authorizing a new ten year lease of vacant City- 
owned land in Alameda County, under the jurisdiction of 
the Public Utilities Commission, to Nextel Communications 
for use as a communications site. 

Assessors Parcel No. 096-0376-007-02, known as a portion 
of Parcel 65 of Sunol and San Antonio Lands, located at 
11600 Pleasanton-Sunol Road, Sunol, Alameda County, 
California 



Purpose of Lease: 



Lessor: 



To allow Nextel Communications to erect antennas and 
other equipment necessary for its cellular telephone, radio, 
and/or other telecommunications services to the public. 

City and County of San Francisco, through the Public 
Utilities Commission 



Lessee: 



Nextel of California, Inc., doing business as Nextel 
Communications 



No. of Sq. Ft. and 
Rent Per Month: 

Annual Rent Payable 
By Nextel 

Communications to 
The City: 



875 square feet at $2,100 per month ($2.40 per square foot) 



$25,200. From the first anniversary of the lease 
commencement date, and for the remaining eight years of 
the lease, the annual rent will be adjusted every twelve 
months by the annual percentage increase of the Consumer 
Price Index. The monthly base rent on or after the 
adjustment date cannot be less than the monthly base rent 
in effect immediately prior to the adjustment date. 

In addition, the base rent will be adjusted to equal the fair 
market rental of such property on the fifth anniversary of 
the lease commencement date. This adjustment will be 
determined by the Public Utilities Commission's Bureau of 
Commercial Land Management, using a market survey 
approach, in consultation with the Department of Real 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



30 



Memo to Finance and Labor Committee 
July 14, 1999 Finance and Labor Committee 



Term of Lease: 

Right of Renewal: 
Description: 



Estate. The adjustment will take into account (a) the 
location and size of premises covered by leases of 
comparable space, and (b) the terms, conditions, renewal 
terms, and duration of comparable leases. The annual base 
rent on or after the adjustment date cannot be less than the 
annual base rent in effect immediately prior to the 
adjustment date. 

The proposed lease between the Public Utilities 
Commission and Nextel Communications would commence 
upon approval by the Board of Supervisors and would 
expire ten years thereafter (approximately July 2009). 

None 

The proposed resolution would authorize a ten year lease of 
875 square feet of vacant space on City-owned land located 
in Sunol, Alameda County, which is under the jurisdiction 
of the Public Utilities Commission. 



Comments: 



Nextel Communications proposes to construct and maintain 
a 200 square foot telecommunications facility, 
mobile/wireless antennas, and fencing, adjacent to the 
existing telecommunications structures erected by the other 
lessees of City-owned land at Sunol: GTE Mobilnet, 
BACTC, Sprint Spectrum L.P., and Pacific Bell Mobile 
Services. Nextel Communications' building plans and 
specifications have been reviewed and approved by the 
Public Utilities Commission. 

1. Attachment I provided by the Public Utilities 
Commission contains a schedule of the four existing leases 
which the Commission has with other cellular 
communications companies at the Sunol site for similar 
cellular communications purposes. The attached schedule 
lists the lessees, the dates and terms of their leases, and 
the square footage leased, and the rental rates. If the 
proposed lease with Nextel Communications is approved, 
the total rental revenues to be received by the Public 
Utilities Commission at the Sunol site from the cellular 
companies will be $9,311 per month, or $111,732 annually. 
As shown in Attachment I, the proposed subject lease with 
Nextel Communications will result in the highest rent 
received by the Citv for a single cellular communications 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 
July 14, 1999 Finance and Labor Committee 



site at Sunol. Attachment I also explains the reasons why 
the square foot rental rate for the existing cellular 
communication site leases at Sunol are higher than for the 
proposed Nextel Communications site lease. 

2. Mr. Gary Dowd of the Public Utilities Commission 
advises, for this subject lease with Nextel Communications, 
that the proposed rental rate of $2,100 per month is the 
current Public Utilities Commission rate for cellular 
communication site leases and that it is considered to be 
fair market value. The Public Utilities Commission 
undertook a market survey of other Bay Area cities, 
counties, and public sector utilities which had leases with 
cellular communications and radio transmission companies, 
and found that the Public Utilities Commission charges the 
highest cellular communications site rental rates because 
its lessees were prepared to pay a premium for this prime 
location in Sunol. Attachment II summarizes the key 
survey findings as they relate to cellular communications 
sites which, according to Mr. Dowd, are comparable to the 
proposed subject lease with Nextel Communications. This 
survey shows that the proposed rental of $2,100 per month 
to be paid by Nextel Communications to the Public Utilities 
Commission is higher than the highest rent charged for a 
cellular communications site by the five surveyed counties. 
The survey of the rents charged by those five counties for 
nine other cellular communications sites range from the 
$1,000 per month charged by Marin County to the $2,000 
per month charged by Santa Clara County. 

3. The Public Utilities Commission's Bureau of 
Environmental Regulation Management has certified that 
Nextel Communication's lease of the site has no effect on 
the environment and, therefore, it has a categorical 
exemption from the requirements of the California 
Environmental Quality Act. Furthermore, the subject lease 
requires Nextel Communications to obtain the necessary 
Alameda County permit approvals prior to any construction 
work which is to be done on the leased City-owned land. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



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36 



Memo to Finance Committee 

July 14, 1999 Finance Committee Meeting 

Item 8 - 99-1085 



Department: 



Item: 



Police Department (SFPD) 
District Attorney 

Hearing to consider the release of reserved funds in the 
amount of $1,654,177, including $380,115 from the State 
Citizen's Option for Public Safety (COPS) Program and 
$1,274,062 from the Federal Community Oriented 
Policing Services - Making Officer Redeployment 
Effective (COPS - MORE) Program, to purchase computer 
equipment and technology for the Police Department and 
the District Attornev's Office. 



Amount & 
Source of Funds: 



Description: 



Federal Community Oriented Policing 
Services - Making Officer 
Redeployment More Effective 

$1,274,062 (COPS - MORE) Program 

State Citizen's Option of Public Safety 
$380.115 (COPS) Program 

$1,654,177 Total 

In April of 1997, the Board of Supervisors authorized the 
Chief of Police to apply for retroactively, accept and 
expend grant funds in the amount of $1,558,717 from the 
U.S. Department of Justice, Office of Community 
Oriented Policing Services - Making Officer 
Redeployment Effective (COPS - MORE) for a project 
entitled the COPS-MORE Program (File No. 143-97-2). 

The Board of Supervisors subsequently appropriated 
$519,573 of State Citizen's Option for Public Safety 
(COPS) Program revenue to match the subject Federal 
COPS - MORE grant (File Nos. 101-96-52, 98-243 and 
101-96-60). 

Of the previously allocated $1,558,717 in Federal COPS- 
MORE grant funds and $519,573 in State COPS funds, 
$1,274,062 and $380,115 respectively were placed on 
reserve pending (a) the Committee on Information 
Technology (COIT) approval for the proposed computer 



BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance Committee 

July 14, 1999 Finance Committee Meeting 



equipment and technology for the COPS-MORE Program; 
(b) the selection of vendors and consultants; and (c) the 
submission of the finalized cost details for the proposed 
computer equipment and consultants. This request would 
authorize the release of the $1,274,062 in Federal COPS- 
MORE grant funds and $380,115 in State COPS funds, 
for a total of $1,654,177 to be used for the COPS-MORE 
Program. 

The COPS-MORE Program 

Sergeant John Bisordi of the Police Department advises 
that the purpose of the proposed COPS-MORE Program is 
to expand the time Police Officers are available for 
"community policing" by an amount equal to 116 FTE 
Police Officers per year. New computer equipment and 
technology would be used to assist Police Officers in 
performing their community policing duties, instead of 
hiring additional Police Officers or increased spending for 
overtime. 

Community policing, as defined by the SFPD, is a 
philosophy, management style and organizational 
strategy which promotes (a) proactive problem-solving, (b) 
police-community partnerships that identify, prioritize 
and solve community problems and (c) full service 
personalized policing, where the same Police Officer 
patrols and works in a particular City neighborhood or 
area. 

The requested funds of $1,654,177 would be used by the 
SFPD to: (a) purchase 6 desktop computers and 177 
laptop computers and install a Local Area Network (LAN) 
in the SFPD's Bureau of Investigations and the District 
Attorney's (DA) Office ($804,495); (b) pay for database 
development services and software configuration and 
customization services by outside consultants ($657,145); 
and (c) hire 10 new civilian employees to perform 
administrative duties currently being performed by sworn 
Police Officers ($192,537). These three items are 
discussed in further detail below. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance Committee 

July 14, 1999 Finance Committee Meeting 



Computer Equipment for SFPD's Investigations 
Bureau and District Attorney's Office ($804.495) 

The SFPD's Bureau of Investigations is located on the 
fourth floor of the Hall of Justice at 850 Bryant Street and 
is staffed by 220 Police Inspectors and 20 other sworn 
personnel, for a total of 240 sworn personnel. The duties 
of Inspectors assigned to this Bureau include the 
investigation of all criminal cases and the presentation of 
cases to one of 10 Assistant DAs in the DA's Office 
(located on the third floor of the Hall of Justice) assigned 
to review cases for approval of a rebooking 1 or issuance of 
an arrest warrant. The rebooking/warrant approval 
process requires the Inspector to gather all relevant 
documents, complete supplemental reports and forms and 
provide detailed documentation of all activities performed 
by the Inspector. Under current practice, each Inspector 
must then physically carry completed case files to the 
DA's Office and wait for an Assistant DA to become 
available in order to review the case. The SFPD reports 
that the DA's Office currently reviews over 20,000 cases 
annually which require the involvement of Police 
Inspectors. According to the SFPD, this review process is 
time-consuming and limits the amount of time that 
Inspectors can dedicate to providing a Police presence on 
City streets. 

Under the proposed grant program, the SFPD would 
purchase the computer equipment necessary to establish 
a Local Area Network (LAN) which would link the SFPD's 
Investigations Bureau and the DA's Office. Additionally, 
the SFPD would purchase six desktop computers for the 
DA's Office and 177 laptop computers for Police 
Inspectors. 

According to the SFPD, this enhanced communication 
between Police Department Inspectors and Assistant DAs 
would (a) allow questions to be resolved rapidly, (b) 
improve the quality of work produced by Inspectors and 



1 A rebooking is the process in which a Police Inspector presents the case against an arrested suspect for review by a 
District Attorney. The DA then decides what charges, if any, to rebook for prosecution against the suspect. State 
law requires that a rebooking be performed within 48 hours after an arrest. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 



Memo to Finance Committee 

July 14, 1999 Finance Committee Meeting 



(c) ultimately allow more rebooking and search warrant 
requests to be filed. SFPD advises that 177 laptop 
computers could also be taken by Inspectors into the field, 
thereby enhancing Police presence in the community. 
Additionally, desktop computers could be used by 
Inspectors and Assistant DAs at the Hall of Justice to 
obtain access to initial crime reports filed by Police 
Officers at the 10 District Police Stations. 

Mr. Sandy Rosen of the Committee on Information 
Technology (COIT) reports that COIT approved the 
proposed computer equipment and technology for the 
SFPD and DA's Office as part of the City's project to 
create a new E-911 enhanced computer aided dispatch 
system. Ms. Lisa Harris of the Emergency 
Communications Department (ECD) advises that Pursuit 
Technology, Inc., Ciber Network Services and Desktop 
Products, Inc. submitted the lowest quotations and were 
selected as the vendors to provide distinct portions of the 
proposed computer equipment and technology. Mr. Rosen 
reports that these three firms are approved by COIT and 
the Purchaser as City "Computer Store" vendors. 

Database and Software Development Services 
($657.145) 

Under the proposed program, the SFPD would hire an 
outside consultant to develop a case management record 
database. This case management database would allow 
Police Inspectors to complete reports, forms and other 
case file information electronically. 

In addition, the SFPD would hire an outside consultant to 
provide, configure and customize the report writing 
software to be used by Inspectors on the proposed 177 
laptop computers in order to complete crime reports, 
documents and case file information. 

Sergeant Bisordi states that the above-noted database 
and software development services will be provided by 
TRW, an outside consultant, and its subcontractors, as 
part of an existing City contract, totaling $17,136,270, for 
TRW to provide professional services and software for the 
City's new E-911 enhanced computer aided dispatch 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

40 



Memo to Finance Committee 

July 14, 1999 Finance Committee Meeting 

system. In August of 1997, the Board of Supervisors 
approved this City contract with TRW by resolution (File 
No. 172-97-24). 

Hiring Civilian Personnel for the District Police 
Stations ($192.537) 

Each of the City's 10 District Police Stations is staffed by 
a station duty Police Officer on a 24 hour-per-day, seven 
day-per-week basis. Police Officers assigned to station 
duty are responsible for staffing the front counter, 
answering the telephone and providing general 
information to the public. The SFPD advises that the 
assignment of sworn personnel to these duties reduces the 
number of Police Officers available to perform police 
duties in the neighborhoods of each district. 

The SFPD is requesting the release of $192,537 to 
partially fund 10 new 1424 Clerk Typist positions to 
assume the duties currently being performed by sworn 
Police Officers assigned to station duty at the District 
Stations for a 12 month period. According to Sergeant 
Bisordi, the total cost of these 10 new positions, including 
salaries and fringe benefits, would be $396,580 or 
$204,043 more than $192,537. Sergeant Bisordi advises 
that the funding source for the additional $204,043 would 
be from previously appropriated 1996 Federal COPS- 
MORE grant funds and State COPS matching funds. 

SFPD advises that the proposed hiring of 10 new civilian 
employees would enable the District Stations to redeploy 
Police Officers from station duty assignments to patrol 
assignments, thereby enhancing the presence of 
Community Police Officers on the streets more 
economically than by hiring ten new Police Officers. 

Budget: The Attachment, provided by the SFPD, contains the 

budget details supporting the proposed release of reserved 
funds in the amount of $1,654,177 for the COPS-MORE 
Program. 

Comments: 1. According to Sergeant Bisordi, the 10 new 1424 Clerk 

Typist positions would be hired at the first salary step of 
$30,302 per year, or $303,020 for 10 positions. In 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

hi 



Memo to Finance Committee 

July 14, 1999 Finance Committee Meeting 

addition, fringe benefits would be $9,356 per position, or 
$93,560 for 10 positions. Thus, the total amount needed 
for the 10 proposed positions is $396,580 ($303,020 plus 
$93,560). 

2. Sergeant Bisordi states that the Federal COPS-MORE 
grant funding may be available to continue to fund the 
proposed 10 new positions for an additional two years 
beyond the initial 12 months of grant funding. If no such 
funding is available, these 10 positions would expire upon 
completion of 12 months of grant funding, according to 
Sergeant Bisordi. 

3. The 10 new positions have already been coded as "G" 
or "Grant funded" in the proposed FY 1999-2000 budget 
so that these positions would expire upon completion of 12 
months of grant funding. 

Recommendation: Approve the proposed release of reserved funds. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

k7. 



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Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Item 9 - File 99-1157 



Department: 
Item: 



Amount: 
Source of Funds: 

Description: 



Mayor's Office of Community Development (MOCD) 

Hearing to consider the release of previously reserved 
funds from the Emergency Shelter Grant Program 
(ESGP), under the 1999 MOCD budget, in the amount of 
$52,000 to fund the following MOCD homeless projects: 
Community Awareness and Treatment Services, $45,000; 
Metropolitan Community Foundation, $7,000. 

$52,000 

Previously reserved funds in MOCD's 1999 budget for the 
ESGP 

The U.S. Department of Housing and Urban 
Development's Emergency Shelter Grant Program 
(ESGP) was first established under the Stewart B. 
McKinney Homeless Assistance Act in July of 1987. 
ESGP is designed to: (1) improve the quality of existing 
emergency shelters for the homeless; (2) expand the 
supply of emergency shelter beds; and, (3) pay the costs of 
operating emergency shelters, including supportive social 
services. 

MOCD is responsible for administering and monitoring 
ESGP. Program funds are budgeted in five categories, 
including three program categories (Essential and Social 
Services, Maintenance and Operating Expenses, and 
Homeless Prevention Services), MOCD Administration, 
and an Emergency Shelter Grants Pool. 

The Board of Supervisors reserved $120,350 of Homeless 
Program Pool funds of the $891,000 ESGP 1999 budget, 
pending submission of budget details of the homeless 
services projects to be funded (Resolution 109-99). 
According to the MOCD, the requested release of $52,000 
of Homeless Program Pool funds from the previously 
reserved funds of $120,350 would pay for the following 
items: 



Community Awareness and Treatment Services 

Metropolitan Community Services 

Total 



$ 45,000 

7.000 

$52.000 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Community Awareness and Treatment Services 

Community Awareness and Treatment Services, a non- 
profit agency, would receive $45,000 for facility 
renovation of the Resource Center for homeless men, 
which is located at 399 Fremont. The renovated Resource 
Center provides 24-hour drop-in services and locker 
storage for personal items. Attachment 1, provided by 
MOCD, details the proposed budget for this project. 

Metropolitan Community Foundation 

The Metropolitan Community Foundation (MCF), a non- 
profit agency, would receive $7,000 to make kitchen 
improvements to meet code requirements as outlined in 
Attachment 2, provided by MOCD. According to Mr. Jon 
Pon, Program Manager, of the MOCD, the kitchen needs 
the installation of a more powerful exhaust fan to 
alleviate the amount of heat being generated from the 
meal preparation operations. The $7,000 also includes the 
electrical work directly related to the exhaust fan 
installation. The MCF operates a meal program for 
homeless persons in the Castro community at 150 Eureka 
Street. Meals are served twice a week and additional 
meals are prepared once a week for distribution at a 
needle exchange site. According to Mr. Pon, currently 375 
meals are prepared per week, and the improvements will 
allow 500 meals per week to be prepared, an increase of 
125 meals per week. 



Comments: 



1. According to Mr. Pon, Community Awareness and 

Treatment Services also received $386,738 from the 

MOCD for FY 1998-99 for additional construction and 
renovation of the Resource Center. 



2. Mr. Pon also reported that MCF received $20,000 from 
the MOCD for FY 1998-99 for meal preparation services. 
Before this $7,000 funding for the exhaust fan 
installation, no construction or renovation funds have 
been provided to MCF by the MOCD. 



Recommendation: 



Approval of the requested release of previously reserved 
funds in the amount of $52,000 is a policy decision for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

45 



Attachment 1 



ITEM RESERVED FOR RELEASE BY FINANCE and LABOR COMMITTEE 

1999 ESG Program 



ITEM: Homeless Program Pool 

Community Awareness and Treatment Services $45,000 

South Beach Homeless Resource Center 
399 Fremont Street 



EXPLANATION: 



The proposed funding will be used to complete the renovation of the new Resource 
Center for homeless men. The new facility will provide 24 hour drop-in services and 
locker storage for personal items. 



Proposed Improvements Cost estimates 

1 . Elevator upgrade & fire alarm connection 23,700 

2. Security monitoring system 5,000 

3. Electrical fixtures & circuits 3,200 

4. Ventilation ducts modifications 6,000 

5. Finished carpentry/hardware 5,500 

6. Signage 1,600 



TOTAL $45,000 



46 



Attachment 2 



ITEM RESERVED FOR RELEASE BY FINANCE and LA30R COMMUTE: 

1999 ESG Program 



ITEM: Homeless Program Pool 

Metropolitan Community Foundation 57,000 

Simply Supper Program 
1 50 Eureka Street 



EXPLANATION: 



The Metropolitan Community Foundation (MCF) operates a meal program for homeless 
persons in the Castro community. Meals are served twice a week and additional 
meals are prepared once a week for distribution at a syringe exchange site. The 
kitchen needs additional improvements to meet code requirements. 

The proposed funding will be used to increase the ventilation by installing an exhaust 
fan inside the hood. The improvements will allow a greater number of meals to be 
prepared. 



Proposed Improvements Cost estimates 

1 . Install exhaust fan & related electrical work $ 7,000 



47 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Item 10 - File 99-1158 



Department: 



Item: 



Amount: 



Source of Funds: 



Description: 



Mayor's Office of Community Development (MOCD) 

Hearing to consider release of $253,475 in previously 
reserved Community Development Block Grant (CDBG) 
funds under the 1999 MOCD budget for the following 
projects: Mission Education Project, Inc., $45,000; Urban 
Economic Development Corporation, $158,475; and the 
revolving loan fund servicing, $50,000. 



$253,475 

Previously reserved funds 
pertaining to CDBG funds. 



in MOCD's 1999 budget 



Under the 1999 CDBG program, the Board of Supervisors 
reserved a total of $503,475. The MOCD is now 
recommending the release of $253,475, including $45,000 
for Public Services and $208,475 for Economic 
Development, leaving a balance of $250,000. According to 
the MOCD, the requested release of $253,475 would pay 
for the following items: 



Mission Education Project, Inc. 
Urban Economic Development Corp. 
Revolving Loan Fund Servicing 
Total 



$ 45,000 

158,475 

50.000 

$253.475 



Project descriptions and budget details are as follows: 

Mission Education Project. Inc. (MEPI) 

Attachment 1 provided by the MOCD, details the annual 
budget for this $60,000 project. The requested MOCD 
Public Services funding of $45,000 to be allocated to 
MEPI, a non-profit agency, is the funding for nine months 
of the annual budget. Such funds were placed on reserve 
pending final negotiation of the 1999-2000 work program. 

According to Mr. Jon Pon, Program Manager, of the 
MOCD, this program offers homework assistance, as 
provided by MEPI employees, for 276 low-income youth 
living in the Mission district who are at risk of academic 
failure. In FY 1998-99, 175 youth were provided tutorial 
assistance, and the MOCD provided $77,000 in CDBG 
funding, according to Mr. Pon. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Urban Economic Development Corp. (UEDC) 

Attachment 2 provided by MOCD, details the annual 
budget for this $211,300 project. The requested MOCD 
Economic Development funding of $158,475 to be 
allocated to UEDC, a non-profit agency, is the funding for 
nine months of the annual budget. Such funds were 
placed on reserve pending a performance review and 
assessment of the organization. 

According to Mr. Pon, this program will provide business 
expansion opportunities to 40 new and existing small 
businesses in low/moderate income neighborhoods by 
providing loan planning, packaging 1 and technical 
assistance. Mr. Pon reported that in FY 1998-99, 14 small 
businesses were assisted by the program and 17 jobs were 
created, at a total cost of $416,300 of which the 
Redevelopment Agency provided $185,000. the MOCD 
provided $211,300 from CDBG funds and the remainder 
of $20,000 being provided from various private sources. 



Revolving Loan Fund Servicing 

The requested Community Development funding of 
$50,000 to be allocated to United States Escrow (U.S.E.) 
Community Services, a for-profit corporation, was placed 
on reserve pending budget details of specific proposals. 
Attachment 3 provided by MOCD, details the budget for 
this program. According to Ms. Pamela David, Director of 
the MOCD, U.S.E Community Services, a Native- 
American minority-owned firm, was selected following a 
Request for Proposal process used to select a suitable loan 
servicing provider. 

The Revolving Loan Fund Sen-icing program pertains to 
the loan servicing 2 of the MOCD small business revolving 
loan fund portfolio, in which up to 175 loans, that are 
made to small businesses, are serviced annually. The 
small business loan program supports business 
expansion, job creation and job retention for small 
businesses. 



1 Loan packaging is the term used to describe the preparation and submission of loan applications. 

2 Loan servicing is the term used to describe the administration and monitoring of loan payments. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Comments: 



Recommendation: 



1. According to Mr. Pon, MOCD negotiated an improved 
homework assistance work program with MEPI, which 
includes additional conditions to ensure that better 
services are provided. Included as a condition is increased 
coordination between MEPI and the participating schools 
referring students to MEPI tutorial services, specifying 
academic benchmarks/skills. MOCD will also be 
monitoring the program's progress. Participating schools 
in the program include: Alvarado Elementary, Bryant 
Elementary, Buena Vista Elementary, George Moscone 
Elementary, Golden Gate, Hoover Middle School, Horace 
Mann Middle School and Mission High School. 

2. According to Ms. David, a study of UEDC's 
organizational performance, commissioned by the San 
Francisco Redevelopment Agency (SFRA) and performed 
by an outside consultant, The Management Center, was 
completed. Subsequently, Mr. Pon reported that the 
UEDC has made changes to its work program, by 
including performance outcome measures, and its 
organizational structure, by hiring two new business 
development specialists to increase capacity, as well as 
reorganizing its board of directors. 

3. Ms. David reported that it is too early to assess 
concrete improvements in performance at UEDC; 
however, the agency is now moving in the right direction 
by making changes based on recommendations made by 
the study, MOCD and SFRA. MOCD, along with SFRA. 
will be closely monitoring actual performance on a 
monthly basis, according to Ms. David. 

Approval of the requested release of reserved funds in the 
amount of $253,475 is a policy decision for the Board of 
Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

50 



Attachment 1 

MISSION EDUCATION PROJECT __ 

Please note that the amount of 545,000 for Mission Educ. Proj. Inc. (MEPI) is the remainder 
amount of the allocated budget to be released from Reserve. The total budget for MEPI is 
560,000. 



BUDGET 




MEPI budget breakdown is as 


follows: 


Salaries & Wages': 


547,442 


Fringe Benefits: 


5,158 


Space Rental: 


6,800 


Program Supplies: 


600 


Total 


S60.000 



x .75 = S45.000 (amount reserved) 
MEPI has budgeted 12% for Administrative Costs and 88% for Program Costs. 

DESCRIPTION 

The S60.000 funded project will provide homework assistance to 276 low income youth living in 
the Mission district who are referred by teachers for risk of academic failure. Sixty (60) students 
will be specially targeted to improve their English and math grades by half a grade with and 40% 
of the sixty will advance the grade level. Forty (40) parents (mostly Spanish speaking) will 
participate in monthly parenting workshops to learn to support the academic achievement of their 
children. 

MEPI has accepted the following addition requirements to ensure success in their program: 

1. Signed Memorandums of Understanding between MEPI and schools referring students to 
MEPI tutorial services specifying academic benchmarks/skills for participating students. 

2. By June 30, 1999, MEPI must provide MOCD with a specific plan on using Support Center 
technical assistance to address organizational deficiencies. 

3. MEPI must demonstrate significant effort to leverage additional non-CDBG funds for its 
operations and programs. 



1 Includes the Executive Director. .5 FTE; and a Program Assistant. .8 FTE. 



51 



Attachment 2 



URBAN ECONOMIC DEVELOPMENT CORP. (UEDC) 



The amount to be released from Reserve (5158,475) is the remainder of promised funding to 
UEDC for the '99-2000 Fiscal Year. The total budget is $21 1,300. 



BUDGET 

UEDC budget breakdown is as follows: 



Salaries & Wages : 


$121,100 


Fringe Benefits: 


23,888 


Contractual Services: 


13,508 


Insurance: 


5,922 


Space Rental: 


13,426 


Equipment leasing : 


10,252 


Program Supplies: 


10,710 


Telecommunications: 


3,850 


Travel/Conferences: 


2,316 


Other (postage...) 


6.328 


Total 


$211,300 



x .75 = $158.475 (amount reserved) 
UEDC has budgeted ailministrative costs at 8% and program costs at 92%. 

DESCRIPTION 

The $211,300 funded program will provide business expansion opportunities to forty (40) new 
and existing small businesses in low/moderate income neighborhoods. Five (5) new Start-ups 
and fifteen (15) small enterprises will acquire additional capital through loan packaging and 
planning assistance resulting in twenty (20) new jobs in these neighborhoods. Technical 
assistance to manage new loans and new jobs is provided to twenty (20) businesses. 



: Includes the Executive Director, .45 FTE; a Business Development Specialist, .45 FTE; a Fiscal Manager, .55 
FTE; an Enterprise Zone Specialist, 1.00 FTE; and an Administrative Assistant, .45 FTE. 
3 Includes a Xerox copier, a postage machine and a water dispenser. 



52 



Attachment 3 
ITEM RESERVED FOR RELEASE BY FINANCE AND LABOR COMMITTEE 

1999 CDBG Program 



ITEM : Economic Development Program Pool 

Revolving Loan Fund Loan Servicing $ 50,000.00 

Contractor 

United States Escrow Community Sei vices 

8121 East Florence Ave. 

Downey, CA 90240 

Regional Offices: Sacramento, CA 

EXPLANATION: 

A Request for Proposals to provide loan servicing for the MOCD small business 
revolving loan fund portfolio was issued and the contractor United States Escrow 
(USE.) Community Services has been selected as a result of that process 

United States Escrow Community Services is a Native-American minority owned firm 
with corporate headquarters in Downey, California with regional servicing offices 
located in Sacramento, California. USE. Community Services has the capacity to 
provide the loan servicing and reporting needed to comply with both MOCD and HUD 
program requirements. 

1999 Program Budget 

Revolving Loan Fund Loan Servicing: 

Loan Set-up Fees for Existing Loans 100 loans x $ 10.00 fee = S 1,000.00 

Loan Set-up Fees for New Loans 75 loans x $ 25 .00 fee = S 1 ,875.00 

Delinquency and Default Services 

175 loans x S 3.50 fee (12 Months) = S 7,350.00 

Miscellaneous expenses: (copying, faxing, mailing, phone) = S 2.275.00 

Monthly Loan Servicing Fees: 

Outstanding Loan Receivables S7. 500 000 

X 01 
S 75,000 

5 75,000/24= $3,125 monthly 

X 12Mos. 
S 37,500 annually S 37 500 00 

TOTAL S 50,000.00 

53 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

Item 11 - 99-1222 



Department: 
Item: 

Amount: 
Source of Funds: 

Description: 



Recreation and Park Department (RPD) 
Department of Public Works (DPW) 

Resolution approving and authorizing the appropriation 
of $984,850 from the Downtown Park Special Fund for 
landscape improvements to the Mid-Embarcadero Music 
Concourse site. 

$984,850 (see Comment No. 1) 

The Downtown Park Special Fund (see Comment Nos. 2 
and 3) 

In June of 1998, the Board of Supervisors approved a 
resolution (File No. 98-1096) urging the Planning, 
Recreation and Park, Public Works and other relevant 
City departments to develop a detailed proposal and 
identify funding sources for the construction of a music 
concourse and organ pavilion to be located within the 
open space created by the demolition of the mid-section of 
Embarcadero Freeway, which was severely damaged 
during the 1989 Loma-Prieta earthquake. This open 
space area, which is now known as the Mid-Embarcadero 
Music Concourse site, is bound by Market Street to the 
north, Mission Street to the south, Steuart Street to the 
west and the Embarcadero Roadway to the east. 

The proposed resolution would approve and authorize the 
appropriation of S984,850 from the Downtown Park 
Special Fund for landscape improvements to the Mid- 
Embarcadero Music Concourse site. 

According to Ms. Deborah Learner of the Recreation and 
Park Department (RPD), the construction work to be 
performed for the landscape improvements to Mid- 
Embarcadero Music Concourse site includes: (1) site 
preparation, including excavation and treatment of 
potentially hazardous soil; (2) site paving; (3) the 
installation of retaining walls for plants and shrubbery; 
(4) the planting of an ornamental tree and construction of 
wood and metal benches; and (5) the installation of 
lighting fixtures within the Mid-Embarcadero Music 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

54 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Concourse site. Attachment I, provided by Ms. Learner, 
describes each of the subject landscape improvements to 
the Mid Embarcadero Music Concourse site. 



Budget: 



The total estimated cost of the subject landscape 
improvements is $984,844, as shown in Attachment II, 
provided by RPD. The requested amount was rounded to 
$984,850. Ms. Learner reports that RPD plans to initiate 
a Request for Proposals process to award a construction 
contract for the subject landscape improvements to the 
Mid-Embarcadero Music Concourse site. 



Comments: 



1. In 1985, the Board of Supervisors amended the City's 
Municipal Code (Planning Code) to add Section 139, a 
new section. Section 139 established the Downtown Park 
Special Fund, which provides a source of funds for the 
acquisition and development of public recreation and park 
facilities for the daytime population in downtown San 
Francisco. According to the Planning Code, the 
Recreation and Park and Planning Commissions have the 
joint responsibility of administering and allocating funds 
in the Downtown Park Special Fund for the acquisition 
and development of public recreation and park facilities. 

2. Section 139 of the Planning Code stipulates that the 
Downtown Park Special Fund shall be funded from 
monies generated by a one-time only $2 per square foot 
fee that has been assessed on new office space constructed 
in downtown San Francisco since 1985. 



Recommendation: 



3. Ms. Peg Stevenson of the Controller's Office reports 
that as of March 1. 1999, the balance of the Downtown 
Park Special Fund is $1,119,000. which is $134,150 more 
than the subject appropriation of $984,850. 

Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

55 



Attachment I 



Date: 7/8/99 

Sender: Deborah Learner 

To: Gabriel Cabrera 

Priority: Normal 

Subject: Embarcadero Music Concourse 



Mid- Embarcadero Music Concourse - Project Elements: 

1. Site preparation, including excavation and treatment of potentially hazardous soil. This 
involves excavating as needed and handling, treatment, disposal and Hauling Hazardous Soil per 
legal requirements. Modifications may be made to the site utilities such as drainage to 
accommodate the revised landscaped area. 

2. Site Paving: Paving will consist of 4" concrete walkway over a 6" aggregate base. In 
addition pavers will be set into a sand setting bed in an attractive "Ashlar" partem. 

3. Site Wall and Precast Concrete: This element will consist of poured in place concrete 
retaining wall planters for plants and shrubbery. Some of the retaining walls will also serve for 
informal seating. There will also be precast concrete elements for balustrades that will define the 
main lawn area. This will provide the most decorative and distinctive element of this landscape 
improvement. 

4. Site Landscaping: This element includes planting of ornamental trees and 
construction of wood and metal benches: 10 large specimen trees will be planted around the 
main lawn. Wood and metal benches will provide seating on the paved areas. In addition 
irrigation will be installed in the lawn and sod will be planted. 

5. Site Electrical: Lighting fixtures will continue the lighting fixture design installed 
throughout the mid-Embarcadero project. In addition safety lighting at steps as well as light 
control panels will be installed. Trenching, cable and conduit will be installed to accomplish this 
work. 



56 



Mid-Embarcadero Music Concourse 

Updated: Estimate of Probable Costs 

3/3/99 



Site Work Development 



Attachment IT 



Description 



Quantity 



Site Preparation 

Earthwork 

Foundation Excavation 

Handling. Treatment. Disposal and Mauling Hazardous Soil 
Site Utilities. Allowance 



18.000 

80 

2.160 

1 



SF 



$100 $18,000.00 



CY $12 00 $960 00 

TON $60 00 $129.600 00 

LS $25.00000 $25.00000 



Turf Deduction 

Light Fixture Deduction 

Sits Paving 

4" Cone. Walkway over 6" Agg. Base 

Slab Pavers over Sand Setting Bed Ashlar Pattern 

Site Walls and Precast 

P.I.P Concrete Step. 12" Width 3 Risers 
P.I.P Concrete Step. 24" Width 3 Risers 

S.S. Handrailing 
Precast Leaning Rail. 42" High 

Concrete Footing for Railing 
P.I.P Concrete Edge @ Lawn 
P.I.P Concrete Curt) (6* Ht.) 
P.I.P. Concrete Curt) (12* Ht.) 
Ramp - Poured-in-Ptace 

S.S. Handrailing 
P.I.P. Concrete Curt) Wall @ Stairs and Planter (30* ht.) 
P.I.P Concrete Seating Wall (18" ht.) 

Site Landscaping 

Ornamental Tree (36* box) 
Landscaping/Sod w/ Drainage 
Ornamental Planting Area 
Wood and Metal Benches 
Irrigation, Allowance 

Site Electrical 
Lighting 

Floodlight Pole & Arms 

Type SF1 Pole Mtd FloodLight 

Type SF2 Pole Mtd. Floodlight 

Step Lights 

Light Control Switching Cabinet 

Trenching, Cable and Conduit 



General Conditions (8%) 

General Contractor's Overhead & Profit Bonds (7%) 

Design Contingency (10%) 

Administration (8%) 

Architectural and Engmeenng Services (LS.) 



18.800 

4 



4,423 
3.500 



80 
100 

24 
344 
344 
428 
350 
320 
724 
144 
120 
290 



10 
9.184 
3.068 

16 

1 



2 
12 

4 

28 

1 

900 



SF -$0.75 

EA -$4,000 00 



SF 
SF 



LF 
LF 
LF 
LF 
LF 
LF 
LF 
LF 
SF 
LF 
LF 
LF 



LF 



$4 50 
$15 00 



$60 00 

$7000 

$150 00 

$250 00 

$4500 

$25 00 

$20 00 

$30 00 

$70 00 

$150 00 

$60 00 

$60.00 



EA $1.50000 

SF $600 

SF $5.00 

EA $1.00000 

LS $13.00000 



($14.100 00) 
($16.000 00) 



$19.90350 
$52.500 00 



$4.800 00 

$7.000 00 

$3.600 00 

$86.00000 

$15,480.00 

$10,700.00 

$7,000.00 

$9.600 00 

$50.680 00 

$21.600 00 

$7,200.00 

$17,400.00 



$15,000 00 
$55,104 00 
$15.340 00 
$16.000 00 
$13.000 00 



EA $4,800 00 $9,600 00 

EA $765 00 $9,180.00 

EA $93000 $3,720.00 

EA $380 00 $10,640.00 

LS $50000 $50000 



$15.00 $13.50000 



Sub- total: 



Sub- total: 



Sub-total: 



Sub-total: 



Sub-total: 



$618.507 50 

$494fl0 60 
$667,988.10 

$46.759 17 
$714,747 27 

$71,474.73 
$786,221.99 

$78.62220 
$864 844 19 
$120.000 00 



Total Probable Construction Cost: $984,844 1 9 



57 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Item 12 - File 99-1272 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Mayor's Office of Housing (MOH) 

Ordinance appropriating $20,000,895 in bond proceeds 
and bond interest income for implementation of tbe 
Affordable Housing and Home Ownership Bond Program 
at the Mayor's Office of Housing. 

$20,000,895 

Proceeds, including accrued interest, from the sale of 
General Obligation Affordable Housing Bonds, Series 
1999A 

In November 1996, San Francisco voters approved 
Proposition A which authorized the City to issue 
$100,000,000 in General Obligation Affordable Housing 
Bonds to (1) finance the development of rental housing 
which can be afforded by low-income households, and (2) 
provide downpayment assistance to low- and moderate- 
income first time homebuyers. $20,000,000 in bonds are 
to be issued each year over the five year period between 
1998 and 2002. 

In October 1997, the Board of Supervisors authorized an 
Affordable Housing and Homeownership Bond Program 
(File 97-97-56), which established that out of the total 
$100,000,000 in Affordable Housing Bonds to be sold, 85 
percent of the proceeds, or $85,000,000, will be used for 
affordable rental housing development and 15 percent of 
the proceeds, or $15,000,000, will be used for 
downpayment assistance loans for first time homebuyers. 
The Board of Supervisors also approved a resolution (File 
97-97-56.1) which specified Regulations for the 
administration of the Affordable Housing and 
Homeownership Bond Program by the Mayor's Office of 
Housing. Those Regulations specify the requirements 
under which the Mayor's Office of Housing will solicit 
proposals and applications for funds from the Program, 
the funding criteria which shall be applied, and the 
conditions which will be attached to the loans made to 
affordable rental housing developers and first time 
homebuyers. The Regulations also specify the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



58 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



requirements for periodic reporting to the Board of 
Supervisors -regarding the loans made through the 
Program. 

The first series of $20,000,000 in bonds under the 
Program, City and County of San Francisco Taxable 
General Obligation Bonds (Affordable Housing) Series 
1998A, were issued on February 18, 1998 (see Comments 
1 - 3 below). 

The second series of $20,000,000 in bonds under this 
Program, Series 1999A, were authorized for issuance by 
the Board of Supervisors (Resolution No. 378-99). These 
bonds were issued on June 10, 1999. The appropriation of 
Series 1999A bond proceeds and accrued interest, totaling 
$20,000,895, is the subject of this request. It is 
anticipated that the remaining series of bonds will be 
issued in three annual installments of $20,000,000 in 
2000, 2001, and 2002, for a total bond issuance of 
$100,000,000. 



Budget: 



Comments: 



Attachment I, provided by Mr. Joe LaTorre of the Mayor's 
Office of Housing, contains the details for this 
$20,000,895 appropriation request for Series 1999A bond 
proceeds and interest. A summary budget is as follows: 



Series 1999A Bond Proceeds an 


d Interest 


Fund 


Amount 


Development Account: Loans to affordable 




rental housing developers 


S16. 842.750 


Downpayment Assistance Loan Account: Loans 




to 60 - 100 first time homeowners 


2.972.250 


Subtotal 


19.S15.000 


Related Costs (including bond issuance costs) 


185. S95 


TOTAL 


S20.000.895 



1. The first series of $20,000,000 in bonds under the 
Program, City and County of San Francisco Taxable 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



59 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



General Obligation Bonds (Affordable Housing) Series 
1998A, were issued on February 18, 1998. Of this 
amount, $16,828,300 was allocated to tbe Development 
Account for tbe development of affordable rental bousing; 
$2,968,137 was allocated to tbe Downpayment Assistance 
Loan Account for first time bomebuyer assistance; and 
$203,563 was utilized to pay costs of issuance. 

2. Under the first bond series, tbe $16,828,300 for 
affordable rental housing development loans was 
committed to nine developers at an average loan of 
$1,869,811 for seven affordable housing projects. To date, 
only two of these nine loan agreements have been 
executed. The seven projects will result in 580 affordable 
rental units, accommodating an estimated 900 persons in 
family, senior, and supportive housing. Attachment II 
contains details about each of these seven projects, 
including their estimated completion dates. 

3. As of June 28, 1999, Mr. LaTorre advises that 54 low- 
and moderate-income households have received 
downpayment assistance loans from the Series 1998A 
$2,968,137 Downpayment Assistance Loan Account. The 
average loan was $43,722. An additional 10 applications 
are pending. Mr. LaTorre expects that a total of 70 loans 
will be made by August 1999 from the Series 1998A bond 
proceeds. 

4. As shown in the table above, this request would 
appropriate $16,842,750 (85 percent of the total Series 
1999A loan monies of $19,815,000) for loans to developers 
of affordable rental housing. Affordable rental housing is 
housing which can be rented by households earning less 
than 60 percent of the Bay Area's annual median income, 
as determined by the Federal Department of Housing and 
Urban Development, adjusted for household size (for 
example, households of three which annually earn less 
than $39,100 in 1999). Mr. LaTorre advises that he is 
currently unable to estimate (a) the number of loans to be 
made, and (b) the average loan amount, because 
developers' applications have yet to be received and 
reviewed. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

60 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



5. The loans to affordable rental housing developers are 
for a maximum of 50 year terms. The loan agreement 
requires that the rental housing be kept affordable by the 
developer for at least 50 years. Depending on a project's 
financial feasibility, the Mayor's Office of Housing can 
structure the terms of its developer's loan to either 
require repayment of the loan, with or without interest, or 
provide for no loan repayment. Mr. LaTorre states that 
the City's loan provisions require that rents be set to 
serve very-low and extremely-low income households to 
the greatest extent possible, and therefore the 
developments often do not generate sufficient revenue to 
pay debt service. As the 50 year affordability term 
exceeds the conventional 40 year economic life of the 
project, most public sector affordable housing finance 
programs, including the Federal Department of Housing 
and Urban Development 202 and 811 grants, the Federal 
Home Investment Partnerships Program, and the Federal 
Community Development Block Grant Program, provide 
for forgiveness of the financing at the end of a 40 to 75 
year term, according to Mr. LaTorre. 

Mr. LaTorre reports that only two loan agreements with 
developers have been executed to date. One, for the 
Ambassador Hotel, requires repayment of the loan and 
accrued interest. The other, for 301 Ellis Street, forgives 
the borrower's obligation to repay the principal (no 
interest is charged on this loan) if the developer has 
remained in compliance with the loan requirements. Of 
the five remaining projects, one loan is projected to be 
partially amortized and partially forgiven, three are 
projected to require contingent repayment if funds are 
available, and one is projected to be forgiven, according to 
Mr. LaTorre. It should be noted, however, that the 
Mayor's Office of Housing and the Redevelopment 
Commission (in its role as the Housing Committee) 
recommend to the Mayor whether or not a developer 
should be required to repay the loan. 

Mr. LaTorre advises that if the developer falls out of 
compliance, then the City will work with that developer to 
ensure a return to compliance, using legal action to 
enforce the loan covenants if necessary. Failing a return 
to compliance, the City can require either transfer of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



61 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



property to another owner, or a full loan repayment with 
interest at an interest rate of 10 percent. 

The loan agreements previously entered into permit 
transfers of the property from one developer to another 
with the approval of the Mayor. Mr. LaTorre notes that 
technically the Regulations refer to the approval of "the 
City" and that they direct the Mayor to execute 
documents on behalf of the City. 

An exception to the 50 year term can be made when the 
rental housing is on land controlled by a public agency 
(for example, Treasure Island or the Presidio) and such 
land is available for a period of less than 50 years, in 
which case a shorter term may be authorized by the 
Mayor. All projects have to meet City affirmative action 
and local hire requirements, as specified in the 
regulations previously approved by the Board of 
Supervisors. Prevailing wage requirements apply to 
projects of 12 or more units. 

6. According to Mr. LaTorre, the Mayor's Office of 
Housing estimates that as a result of the proposed 
$16,842,750 in loans to developers of affordable rental 
housing projects, approximately 500 rental units will 
become available, either through construction of new 
units or rehabilitation of existing units, and that they will 
house approximately 900 people. Mr. LaTorre estimates 
that the 500 rental units will be available for occupancy 
within one to four years. However, because specific 
development projects have not yet been identified, the 
actual number of units to be built is currently unknown. 
That number is dependent on the particulars of each 
project's financing and the availability of other subsidies. 
Financing arrangements and subsidies are allowing 80 
more units to be built using Series 1998A bond proceeds 
than the 500 which had been projected at the time that 
the 1998 supplemental appropriation was approved, 
according to Mr. LaTorre. 

7. The Mayor's Office of Housing allocates affordable 
rental housing development loan funds through a process 
designed to leverage non-City funding to the maximum 
extent possible. Series 1998A affordable rental housing 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



62 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



development grants leveraged $37,688,934 in non-City 
funds, including Federal Department of Housing and 
Urban Development Section 202 grants, Federal 
McKinney Homeless Funds, low-income housing tax 
credits, and private mortgage financing. Mr. LaTorre 
estimatfeb that the Series 1999A affordable rental housing 
development loan funds from the Development Account 
will leverage approximately 540.000,000 in non-City 
funds for projects to be funded from that account. Federal 
and State funding will depend on availability and the 
specific projects identified. 

8. As shown in the table above, this request would 
appropriate $2,972,250 (15 percent of the total Series 
1999A loan monies of $19,815,000) for first time 
homebuyer loan assistance. This will provide 

downpayment loans of up to $50,000 for an estimated 60 
to 100 households for the purchase of single family 
residences. In line with the Regulations for the 
administration of the Affordable Housing and Home 
Ownership Bond Program, the Mayor's Office of Housing 
will set aside 25 percent of the loan funds, or an 
estimated $743,062, for households earning less than 80 
percent of median Bay Area income, as determined by the 
Federal Department of Housing and Urban Development, 
adjusted for household size (for a household of three, less 
than $52,150 in 1999). The remaining 75 percent, or an 
estimated $2,229,188. would be available to be loaned to 
households which earn up to 100 percent of median 
income, adjusted for household size (for a household of 
three, up to $65,150 in 1999). Repayment of loans would 
be deferred, with the principal of the loan and the 
proportional share of the appreciation of the property to 
be repaid at the time of sale or rental. The proportional 
share will be based on the ratio of the loan amount to the 
original purchase price. No interest will be charged for 
the subject downpayment assistance loans. Mr. LaTorre 
estimates that the $2,972,250 will leverage approximately 
$10,000,000 in first mortgage financing for the first time 
homebuyers receiving loan assistance. 

9. The Mayor's Office of Housing will track the sale of the 
single family residences purchased with the subject loans 
by having a recorded hen on the property. Properties will 
be monitored to ensure ongoing compliance with the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

63 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 

owner-occupancy requirements of the Program. 
Monitoring methods may include such measures as 
requiring copies of utility or telephone bills, which is a 
proven and rehab le method of determining occupancy 
according to Mr. LaTorre. 

10. As previously noted, individual homeowners will be 
required to pay back their loans and a percentage of the 
appreciated value of their residences if they subsequently 
sell or rent their residences. However, regarding 
developer loans, it is strictly left to the discretion of the 
Mayor, on the advice of the Mayor's Office of Housing and 
the Redevelopment Commission (in its role as the 
Housing Committee), as to which developers will be 
required to repay their loans and as to whether or not 
interest will be charged on those loans. 

Further, developers are also able to transfer the 
properties, and the related loans, to another developer 
with the approval of the Mayor. Mr. LaTorre notes that 
technically the Regulations refer to the approval of "the 
City" and that they direct the Mayor to execute 
documents on behalf of the City. 

The Mayor's Office of Housing will monitor rental housing 
developments annually for ongoing compliance with 
occupancy and affordability covenants and other 
requirements of the loan agreements. 

The Mayor's Office of Housing reports annually to the 
Board of Supervisors on the performance of the Affordable 
Housing and Home Ownership Bond Program. The most 
recent report was submitted to the Board in April 1999. 

Recommendation: Approval of the proposed resolution is a policy decision for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

64 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 




tarvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

65 



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67 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 






Item 12 - File 99-1272 

Department: 

Item: 

Amount: 
Source of Funds: 

Description: 



REVISED July 12, 1999 
Mayor's Office of Housing (MOH) 

Ordinance appropriating $20,000,895 in bond proceeds 
and bond interest income for implementation of tbe 
Affordable Housing and Home Ownership Bond Program 
at tbe Mayor's Office of Housing. 

$20,000,895 

Proceeds, including accrued interest, from the sale of 
General Obligation Affordable Housing Bonds, Series 
1999A. 

In November 1996, San Francisco voters approved 
Proposition A which authorized the City to issue 
$100,000,000 in General Obligation Affordable Housing 
Bonds to (1) finance the development of rental housing 
which can be afforded by low-income households, and (2) 
provide downpayment assistance to low- and moderate- 
income first time homebuyers. $20,000,000 in bonds are 
to be issued each year over the five year period between 
1998 and 2002. 



In October 1997, the Board of Supervisors authorized an 
Affordable Housing and Homeownership Bond Program 
(File 97-97-56), which established that out of the total 
$100,000,000 in Affordable Housing Bonds to be sold, 85 
percent of the proceeds, or $85,000,000, will be used for 
affordable rental housing development and 15 percent of 
the proceeds, or $15,000,000, will be used for 
downpayment assistance loans for first time homebuyers. 
The Board of Supervisors also approved a resolution (File 
97-97-56.1) which specified Regulations for the 
administration of the Affordable Housing and 
Homeownership Bond Program by the Mayor's Office of 
Housing. Those Regulations specify the requirements 
under which the Mayor's Office of Housing will solicit 
DOCUMENTS DPDT proposals and applications for funds from the Program, 

the funding criteria which shall be applied, and the 
conditions which will be attached to the loans made to 
affordable rental housing developers and first time 
homebuyers. The Regulations also specify the 



JUL 1 h ;::3 

SAN FRANCISCO 
PUBLIC LIBRARY 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



58 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



requirements for periodic reporting to the Board of 
Supervisors regarding the loans made through the 
Program. 

The first series of $20,000,000 in bonds under the 
Program, City and County of San Francisco Taxable 
General Obligation Bonds (Affordable Housing) Series 
1998A, were issued on February 18, 1998 (see Comments 
1 - 3 below). 

The second series of $20,000,000 in bonds under this 
Program, Series 1999A, were authorized for issuance by 
the Board of Supervisors (Resolution No. 378-99). These 
bonds were issued on June 10, 1999. The appropriation of 
Series 1999A bond proceeds and accrued interest, totaling 
$20,000,895, is the subject of this request. It is 
anticipated that the remaining series of bonds will be 
issued in three annual installments of $20,000,000 in 
2000, 2001, and 2002, for a total bond issuance of 
$100,000,000. 



Budget: 



Attachment I, provided by Mr. Joe LaTorre of the Mayor's 
Office of Housing, contains the details for this 
$20,000,895 appropriation request for Series 1999A bond 
proceeds and interest. A summary budget is as follows: 



Series 1999A Bond Proceeds and Interest 


Fund 


Amount 


Development Account: Loans to affordable 
rental housing developers 


$16,842,750 


Downpayment Assistance Loan Account: Loans 
to 60 - 100 first tune homeowners 


2.972.250 


Subtotal 


19,815.000 


Related Costs (including bond issuance costs) 


185.895 


TOTAL 


S20.000.895 



Comments: 



1. The first series of $20,000,000 in bonds under the 
Program, City and County of San Francisco Taxable 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



59 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



General Obligation Bonds (Affordable Housing) Series 
1998A, were issued on February 18, 1998. Of this 
amount, $16,828,300 was allocated to the Development 
Account for the development of affordable rental housing; 
$2,968,137 was allocated to the Downpa3'ment Assistance 
Loan Account for first time homebuyer assistance; and 
$203,563 was utilized to pay costs of issuance. 

2. Under the first bond series, the $16,828,300 for 
affordable rental housing development loans was 
committed to nine developers at an average loan of 
$1,869,811 for seven affordable housing projects. To date, 
only two of these nine loan agreements have been 
executed. The seven projects will result in 580 affordable 
rental units, accommodating an estimated 900 persons in 
family, senior, and supportive housing. Attachment II 
contains details about each of these seven projects, 
including their estimated completion dates. 

3. As of June 28, 1999, Mr. LaTorre advises that 54 low- 
and moderate -income households have received 
downpayment assistance loans from the Series 1998A 
$2,968,137 Downpayment Assistance Loan Account. The 
average loan was $43,722. An additional 10 applications 
are pending. Mr. LaTorre expects that a total of 70 loans 
will be made by August 1999 from the Series 1998A bond 
proceeds. 

4. As shown in the table above, this request would 
appropriate $16,842,750 (85 percent of the total Series 
1999A loan monies of $19,815,000) for loans to developers 
of affordable rental housing. Affordable rental housing is 
housing which can be rented by households earning less 
than 60 percent of the Bay Area's annual median income, 
as determined by the Federal Department of Housing and 
Urban Development, adjusted for household size (for 
example, households of three which annually earn less 
than $39,100 in 1999). Mr. LaTorre advises that he is 
currently unable to estimate (a) the number of loans to be 
made, and (b) the average loan amount, because 
developers' applications have yet to be received and 
reviewed. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

60 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



5. The loans to affordable rental housing developers are 
for a minimum of 50 year terms. The loan agreement 
requires that the rental housing be kept affordable by the 
developer for at least 50 >'ears. Depending on a project's 
financial feasibility, the Mayor's Office of Housing can 
structure the terms of its developer's loan to either 
require repayment of the loan, with or without interest, or 
provide for no loan repayment. Mr. LaTorre states that 
the City's loan provisions require that rents be set to 
serve very-low and extremely-low income households to 
the greatest extent possible, and therefore the 
developments often do not generate sufficient revenue to 
pay debt service. As the 50 year affordability term 
exceeds the conventional 40 year economic life of the 
project, most public sector affordable housing finance 
programs, including the Federal Department of Housing 
and Urban Development 202 and 811 grants, the Federal 
Home Investment Partnerships Program, and the Federal 
Community Development Block Grant Program, provide 
for forgiveness of the financing at the end of a 40 to 75 
year term, according to Mr. LaTorre. 

Mr. LaTorre reports that only two loan agreements with 
developers have been executed to date. One, for the 
Ambassador Hotel, requires repayment of the loan and 
accrued interest. The other, for 301 Ellis Street, forgives 
the borrower's obligation to repay the principal (no 
interest is charged on this loan) if the developer has 
remained in compliance with the loan requirements. Of 
the five remaining projects, one loan is projected to be 
partially amortized and partially forgiven, three are 
projected to require contingent repayment if funds are 
available, and one is projected to be forgiven, according to 
Mr. LaTorre. It should be noted, however, that the 
Mayor's Office of Housing and the Housing Committee 
(consisting of members of the Redevelopment 
Commission) recommend to the Mayor whether or not a 
developer should be required to repay the loan. 

Mr. LaTorre advises that if the developer falls out of 
compliance, then the City will work with that developer to 
ensure a return to compliance, using legal action to 
enforce the loan covenants if necessary. Failing a return 
to compliance, the City can require either transfer of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



property to another owner, or a full loan repayment with 
interest at an interest rate of 10 percent. 

The loan agreements previously entered into permit 
transfers of the property from one developer to another 
with the approval of the Mayor. Mr. LaTorre notes that 
technically the Regulations refer to the approval of "the 
City" and that they direct the Mayor to execute 
documents on behalf of the City. 

An exception to the 50 year term can be made when the 
rental housing is on land controlled by a public agency 
(for example, Treasure Island or the Presidio) and such 
land is available for a period of less than 50 years, in 
which case a shorter term may be authorized by the 
Mayor. All projects have to meet City affirmative action 
and local hire requirements, as specified in the 
regulations previously approved by the Board of 
Supervisors. Prevailing wage requirements apply to 
projects of 12 or more units. 

6. According to Mr. LaTorre, the Mayor's Office of 
Housing estimates that as a result of the proposed 
$16,842,750 in loans to developers of affordable rental 
housing projects, approximately 500 rental units will 
become available, either through construction of new 
units or rehabilitation of existing units, and that they will 
house approximately 900 people. Mr. LaTorre estimates 
that the 500 rental units will be available for occupancy 
within one to four years. However, because specific 
development projects have not yet been identified, the 
actual number of units to be built is currently unknown. 
That number is dependent on the particulars of each 
project's financing and the availability of other subsidies. 
Financing arrangements and subsidies are allowing 80 
more units to be built using Series 1998A bond proceeds 
than the 500 which had been projected at the time that 
the 1998 supplemental appropriation was approved, 
according to Mr. LaTorre. 

7. The Mayor's Office of Housing allocates affordable 
rental housing development loan funds through a process 
designed to leverage non-City funding to the maximum 
extent possible. Series 1998A affordable rental housing 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

62 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 



development grants leveraged $37,688,934 in non-City 
funds, including Federal Department of Housing and 
Urban Development Section 202 grants, Federal 
McKinney Homeless Funds, low-income housing tax 
credits, and private mortgage financing. Mr. LaTorre 
estimates that the Series 1999A affordable rental housing 
development loan funds from the Development Account 
will leverage approximately $40,000,000 in non-City 
funds for projects to be funded from that account. Federal 
and State funding will depend on availability and the 
specific projects identified. 

8. As shown in the table above, this request would 
appropriate $2,972,250 (15 percent of the total Series 
1999A loan monies of $19,815,000) for first time 
homebuyer loan assistance. This will provide 
downpayment loans of up to $50,000 for an estimated 60 
to 100 households for the purchase of single family 
residences. In line with the Regulations for the 
administration of the Affordable Housing and Home 
Ownership Bond Program, the Mayor's Office of Housing 
will set aside 25 percent of the loan funds, or an 
estimated $743,062, for households earning less than 80 
percent of median Bay Area income, as determined by the 
Federal Department of Housing and Urban Development, 
adjusted for household size (for a household of three, less 
than $52,150 in 1999). The remaining 75 percent, or an 
estimated $2,229,188, would be available to be loaned to 
households which earn up to 100 percent of median 
income, adjusted for household size (for a household of 
three, up to $65,150 in 1999). Repayment of loans would 
be deferred, with the principal of the loan and the 
proportional share of the appreciation of the property to 
be repaid at the time of sale or rental. The proportional 
share will be based on the ratio of the loan amount to the 
original purchase price. No interest will be charged for 
the subject downpayment assistance loans. Mr. LaTorre 
estimates that the $2,972,250 will leverage approximately 
$10,000,000 in first mortgage financing for the first time 
homebuyers receiving loan assistance. 

9. The Mayor's Office of Housing will track the sale of the 
single family residences purchased with the subject loans 
by having a recorded hen on the property. Properties will 
be monitored to ensure ongoing compliance with the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

63 



Memo to Finance and Labor Committee 

Jul}' 14, 1999 Finance and Labor Committee Meeting 

owner-occupancy requirements of tbe Program. 
Monitoring metbods may include sucb measures as 
requiring copies of utility or telephone bills, which is a 
proven and reliable method of determining occupancy 
according to Mr. LaTorre. 

10. As previously noted, individual homeowners will be 
required to pay back their loans and a percentage of the 
appreciated value of their residences if they subsequently 
sell or rent their residences. However, regarding 
developer loans, it is strictly left to the discretion of the 
Mayor, on the advice of the Mayor's Office of Housing and 
the Housing Committee (consisting of members of the 
Redevelopment Commission), as to which developers will 
be required to repay their loans and as to whether or not 
interest will be charged on those loans. 

Further, developers are also able to transfer the 
properties, and the related loans, to another developer 
with the approval of the Mayor. Mr. LaTorre notes that 
technically the Regulations refer to the approval of "the 
City" and that they direct the Mayor to execute 
documents on behalf of the City. 

The Mayor's Office of Housing will monitor rental housing 
developments annually for ongoing compliance with 
occupancy and affordabilitj' covenants and other 
requirements of the loan agreements. 

The Ma3 r or's Office of Housing reports annually to the 
Board of Supervisors on the performance of the Affordable 
Housing and Home Ownership Bond Program. The most 
recent report was submitted to the Board in April 1999. 

Recommendation: Approval of the proposed ordinance is a policy decision for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

64 



Memo to Finance and Labor Committee 

July 14, 1999 Finance and Labor Committee Meeting 




tarvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

65 



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67 




City and County of San Francisco 

Meeting Minutes 
..Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, July 21 , 1 999 



10:00 AM 

Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:16 a.m. 

REGULAR AGENDA 



991032 [Memorandum of Understanding-Local 798-Unit 1] 
Mayor 

Ordinance adopting and implementing the provision of a Memorandum of Understanding between the San 
Francisco Fire Fighters Union Local 798, IAFF, AFL-CIO for Bargaining Unit 1 and the City and County of 
San Francisco for the period July 1, 1999 through June 30, 2001. 

(Fiscal Impact) 

5/24/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
7/14/99, CONTINUED Continued to July 21, 1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Alice Villagomez, Deputy Director, 
Department of Human Resources; Supervisor Ammiano ; Supervisor Yee; Chief Demmons, Fire Department; 
Supervisor Bierman. In Support: Sandra Johnson, Local 798; Charles Crane, Hispanic Fire Fighters 
Association; John Dorman; Paul Chin, President, Asian Fire Fighters Association; Mark Securra; Anita 
Bradley, Steering Committee, Women Fire Fighters; Paula Gammic; Fred Sanchez, Battalion Chief, Fire 
Department; John Handley, President, Fire Fighters Union, Local 798; Tom O'Connor Opposed: Tyrone 
Pruitt, President, Black Fire Fighters Association; Carl Barnes, Fire Station 19; Jim Corrigan; Kevin Smith; 
Jimmy Braden; Pete Fay. Amendment of the Whole of Memorandum of Understanding only, to make clerical 
corrections. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 

DOCUMENTS DEPT. 



AUG 6 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at 4:55 PM on '/2ZV9 



Finance and Labor Committee 



Meeting Minutes 



July 21. 19W 



991033 (Memorandum of Understanding-Local 798, I mi 2| 
Mayor 

Ordinance adopting and implementing the provisions of a Memorandum of Understanding between the San 
Francisco Fire Fighters Union Local 798, IAFF, AFL-CIO for Bargaining Unit 2 and the City and County of 
San Francisco for the period July 1 , 1999 through June 30, 2001 . 

(Fiscal impact.) 

5/24/99, RECEIVED AND ASSIGNED lo Finance and Labor Committee 
7/14/99, CONTINUED Continued to July 21, 1999 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Alice Villagomez. Deputy Director, 
Department of Human Resources; Supervisor Ammiano; Supervisor Yee; Chief Demmons, Fire Department. 
Supervisor Bierman In Support Sandra Johnson, Local 798; Charles Crane. Hispanic Fire Fighters 
Association; John Dorman; Paul Chin. President. Asian Fire Fighters Inw/i union. Mark Securra. Anita 
Bradley. Steering Committee. Women Fire Fighters; Paula Gammic; Fred Sanchez. Battalion Chief. Fire 
Department; John Handley. President, Fire Fighters Union, Local 798, Tom O'Connor Opposed Tyrone 
Pruitt. President. Black Fire Fighters Association; Carl Barnes, Fire Station 19. Jim Corrigan, Kevin Smith. 
Jimmy Braden; Pete Fay. Amendment of the Whole of Memorandum of Understanding only, to make clerical 
corrections. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991269 (Authorizing Public Utilities Commission to apply for State funds to reimburse the City for construction 
costs for the Islais Creek and Rankin Street sewage storage and treatment facilities.] 
Resolution authorizing the Public Utilities Commission to apply for and enter into loan agreements not to 
exceed $50 million for the reimbursement of prior expenditures incurred for the construction of the Islais 
Creek/Rankin Street storage facilities. (Public Utilities Commission) 
6/23/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
6/30/99, SUBSTITUTED Substituted by Public Utilities Commission 6/30/99. bearing new title 
6/30/99, ASSIGNED to Finance and l-abor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst. Bill Berry. Assistant General Manager. 
Finance and Administration. Public Utilities Commission. 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



991278 (Emergency Repairs, 3rd Street Sewers) 

Resolution approving the expenditure of funds for the emergency work to replace the hydraulically inadequate 
sewers on 3rd Street between Jerrold Avenue and Palou Avenue. Dormer Avenue between Ingalls Street and 
Jennings Street, and Jennings Street between Donner Avenue and Egbert Avenue - $1,674,713.00. (Public 
Utilities Commission) 

(Fiscal impact.) 

6/23/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst: Boon Lim. Public Utilities Commission; 
Supen'isor Yee; Norman Chan, Department of Public Works 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4 :55 PM on '7ZV9 



Finance and Labor Committee 



Meeting Minutes 



July 21, 1999 



991301 [Airport Lease Agreement for American Airlines L-82-0111 for space in Boarding Area "E"] 

Resolution approving lease modification No. 8 for Lease 82-01 1 1 between American Airlines, Inc. and the 
City and County of San Francisco, acting by and through its Airport Commission. (Airport Commission) 
6/29/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Peter Nardoza, Deputy Director, Public 
Affairs, Airport; Supervisor Ammiano. Amended to correct amount of additional annual rent paid by 
American Airlines to the Airport from "$52,261 " to "530,61 2.63"; same title. 
AMENDED. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991335 [Medical Services at San Francisco Jail System] 
Supervisors Yee, Ammiano, Bierman 

Hearing to assess the true nature of medical attention to Vincent Hines and its relationship in his death in the 

San Francisco jail system. 

7/6/99, RECEIVED AND ASSIGNED to Public Health and Environment Committee. 

7/15/99, TRANSFERRED to Finance and Labor Committee. 

Supervisor Bierman added as cosponsor. 

CONTINUED TO CALL OF THE CHAffi by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 12:35 p. m. 



City and County of San Francisco 



Printed at 4:55 PM on 7/22/99 



015^ 



lift*) 



CITY AND COUNTY 




Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 



g ofsanfrancisccPOCUMENTS DEPT. 



.BOARD OF SUPERVISORS 



BUDGET ANALYST 



JUL 2 19S9 

SAN FRANCISCO 
PUBLIC LIBRARY 



1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



July 16, 1999 
TO: ^Finance and Labor Committee 

FROM: ^Budget Analyst 

SUBJECT: July 21, 1999 Finance and Labor Committee Meeting 
Items 1 and 2- Files 99-1032 and 1033 

Note: These items were continued from the July 14, 1999 Finance and 

Labor Committee Meeting. 

Departments: Department of Human Resources 

Fire Department 

Items: Ordinance adopting and implementing the provisions 

of a Memorandum of Understanding (MOU) between 
the San Francisco Fire Fighters Union Local 798, 
IADD, AFL-CIO for Bargaining Unit 1 and the City 
and County of San Francisco for the two-year period 
July 1, 1999 through June 30, 2001 (File 99-1032). 

Ordinance adopting and implementing the provisions 
of a Memorandum of Understanding (MOLT) between 
the San Francisco Fire Fighters Union Local 798, 
IAFF, AFL-CIO for Bargaining Unit 2 and the City 
and County of San Francisco for the two-year period 
July 1, 1999 through June 30, 2001. 

Description: In 1995, the Board of Supervisors approved an MOU 

with the Firefighters Union Local 798, Bargaining 
Units 1 and 2 for the four-year period from July 1, 
1995 through June 30, 1999. Bargaining Unit 1 covers 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



the following 17 uniform classifications, comprising a 
total of 1,517 employees: 

H-2 Firefighter 

H-3 Firefighter Paramedic 

H-4 Inspector, Fire Prevention & Public Safety 

H-6 Investigator, Bureau of Fire Prevention 

H-10 Chiefs Operator 

H-16 Technical Training Specialist 

H-18 Coordinator of Community Services 

H-19 Operations-Training Supervisor, Airport 

H-20 Lieutenant 

H-22 Lieutenant, Fire Prevention & Public Safety 

H-24 Lieutenant, Fire Investigations 

H-28 Lieutenant, Training 

H-29 Special Services Officer 

H-30 Captain 

H-32 Captain, Fire Prevention & Public Safety 

H-33 Captain, Emergency Medical Services 

H-39 Captain, Training 

Bargaining Unit 2 covers the following five uniform 
classifications, comprising a total of 61 employees: 

H-40 Battalion Chief 

H-43 EMS Section Chief 

H-50 Assistant Chief 

H-110 Marine Engineer of Fire Boats 

H-120 Pilot of Fire Boat 

The proposed two MOUs would extend the prior MOUs 
for the two-year term from July 1, 1999 through June 
30, 2001 for Bargaining Units 1 and 2. 

The major changes of the two new subject MOUs from 
the prior MOUs, which expired on June 30, 1999, 
include the following: 

Salary Increases: A 5.5 percent increase in the base 
salaries effective July 1, 1999 and an additional 5.5 
percent increase in base salaries effective July 1, 2000, 
for total salary increases of 11 percent over the two- 
year term of these MOUs. Such increases in base 
salaries for the Fire Department are consistent with 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



the salary increases approved by the Board of 
Supervisors for Police Officers under a MOU with the 
Police Officers Association. 

Working out of Classification Pav: Fire suppression 
employees would be required to perform the full range 
of duties of the higher rank in order to receive higher 
pay for working out of classification, instead of the 
prior practice of simply accepting responsibility and 
carrying out certain duties of the higher classification. 
In addition, although no criteria currently exists for 
non-suppression employees to receive the pay of a 
higher rank, the proposed MOU requires that the 
assignment to a higher rank must be in writing, the 
higher position must be an authorized budgeted 
position, the employee must perform the higher 
ranked duties for longer than ten consecutive 
workdays and, consistent with the Department of 
Human Resources guidelines, there would be a six- 
month limitation on such assignments. 

Holiday Pav: Under the prior MOUs, every Fire 
Suppression employee received time and one -half for 
each of the 11 holidays, whether the employee works 
on that specific holiday or not. The Department of 
Human Resources estimates that this additional 
Holiday Overtime pay resulted in an increase of these 
employees' base salaries of eight percent. Under the 
proposed MOUs, all Fire Suppression employees would 
receive a six percent increase in their overall base 
salary. Although this constitutes a reduction of two 
percent, the six percent increase in base salary, in lieu 
of time and one-half for each of 11 holidays, is paid 
even if the Fire Suppression employees do not work on 
any of the 11 holidays. However, Ms. Villagomez 
reports that this Holiday Pay premium is unique for 
Fire Suppression employees because other City 
employees have either the holiday or another day off 
as a holiday benefit, which Fire Suppression 
employees do not receive and that this provision is 
consistent with Fire Department holiday pay practices 
in other jurisdictions. If a Fire Suppression employee 
calls in sick on a holiday when that employee is 
scheduled to work, and is therefore not able to work on 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



that holiday, the employee would not receive the six 
percent premium just for that specific biweekly pay 
period. 

Education Incentive Pav Premiums: Previously, 
qualifying employees received a specific biweekly 
education incentive pay schedule according to 
employee classification, if they completed an 
Associate's degree in Fire Science or related field or a 
Bachelor's degree. The Department of Human 
Resources estimates that approximately 127, or eight 
percent of employees received this premium at a cost 
of slightly less than one percent of salaries. Effective 
July 1, 1999, a three percent incentive reward would 
be paid to all Local 798 employees with either (a) an 
Associate's degree in Fire Science or a related field, (b) 
a Bachelor's degree or (c) ten years of sen-ice with the 
Fire Department and completion of Fire Department 
annual training requirements. An additional three 
percent incentive reward would be added effective July 
1, 2000, for a total of six percent education incentive 
premium. Although currently, additional education 
incentive pay is not considered part of an employee's 
salary when computing retirement benefits, the 
proposed incentive payments would be considered part 
of an employee's base salary for purposes of computing 
future retirement benefits and contributions. Ms. 
Debra Ward of the Fire Department estimates that 
given the additional provision to allow employees with 
at least ten years of service to receive this additional 
benefit will result in approximately 70 percent of the 
uniformed personnel to receive this additional pay 
premium. 

Administrative Assignment Pav Premiums: Instead of 
specific pay schedules which previously ranged from 
$171 biweekly for Firefighters to $227 for Captains, all 
field employees in Bargaining Unit 1 that are assigned 
by the Chief of the Department to perform 
administrative assignments for a 40-hour work week 
will receive an additional $175 biweekly. Similarly, 
instead of specific pay schedules which previously 
ranged from $275 for Battalion Chiefs to $316 for 
Assistant Chiefs biweekly, all field employees in 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

4 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



Bargaining Unit 2 that are assigned by tbe Chief of 
the Department to perform administrative 
assignments for a 40-hour work week will receive an 
additional $225 biweekly. Under the prior MOUs, 
these administrative assignment pay schedules 
increased with each salary increase, but under the 
proposed MOU, the new standard pay rates would 
remain the same, regardless of salary changes, such 
that these proposed changes should result in savings 
for the City. 

Paramedic Cross-training Pav Premiums: Under both 
the prior and proposed MOUs, the difference in salary 
between an H-2 Firefighter and an H-3 
Firefighter/Paramedic is approximately 15 percent. 
Effective July 1, 1999, employees enrolled in the 
Paramedic cross-training program will receive a new 
three percent premium, which will increase to a five 
percent premium after completion of the initial six- 
month training requirements and continued 
participation in the training program. Under the prior 
MOU, there was no additional compensation for the 
Paramedic cross-training period. 

Hours: A change in the definition of a Fire 
Suppression workday from either 8 hours or 16 hours 
to a standard 12 hours. Ms. Villagomez reports that 
this change is intended to reconcile the number of 
actual hours worked with the existing pay practices 
within the Fire Department. 

Family Care Leave: Under the prior MOU, there was a 
more limited child care leave. Under the proposed 
MOU, there would be up to one year of unpaid Family 
Care Leave for all employees with one or more years of 
service. During such time, the City would continue to 
provide health and dental benefits for employees and 
their dependents. In addition, female firefighters 
returning from maternity leave may work a modified 
duty assignment up to six weeks, as determined 
appropriate by the Department's physician. 

Health Benefits: Full medical premium coverage for 
employees with no dependents and up to $225 or 75 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

5 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

percent of the cost of Kaiser's Medical premium costs, 
whichever is greater, for each employee plus two 
dependents. The Department of Human Resources 
estimates that as of July 1, 1999, this provision will 
result in an increase of $23 per month per dependent 
employee, since previously, the MOUs provided that 
the City contributed a flat $225 per month towards 
dependent health coverage. In addition, except for 
unpaid Family Care Leave, the City will cease to pay 
for health coverage after 12 weeks of unpaid leave 
status. 

• Wellness Program: Effective July 1, 1999, once a 
core account of 360 hours of sick leave has been 
accrued for each employee, suppression employees can 
cash out 60 hours and non-suppression employees can 
cash out 50 hours of sick leave hours. Previously, there 
was no provision for cashing out sick leave hours and 
employees can accumulate up to 1,272 hours of sick 
leave. The Department of Human Resources notes 
that this provision should result in a significant 
reduction in overtime expenditures since overtime is 
required to backfill positions to cover for Firefighters 
who are out sick. However, the Department of Human 
Resources advises that there are no assurances that 
such reductions in overtime will actually be achieved. 

• Radios: A new provision which would require the City 
to provide and maintain each truck company with two 
portable radios and each member of a rescue squad 
with one such radio while on duty. Previously, no radio 
provision existed in the MOUs. Ms. Alice Villagomez of 
the Department of Human Resources reports that this 
new provision is consistent with the planned 
switchover to the new 911 system. 

• Health and Safetv: Voluntary prostrate and breast 
cancer screening would be offered and paid for by the 
Fire Department to males and females over 40 years of 
age through the Department's Health Check Program. 
Previously, no such screening program existed in the 
MOU. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

• Employee Assistance Program: Requires continuation 
of a minimum of two full-time employees in the Stress 
Unit Program and coordination with the City's 
Employee Assistance Program. Previously, the Stress 
Unit Program had three full-time employees. 

• Modified Dutv Assignments: New provisions for the 
way modified duty assignments are determined and 
evaluated based on job injuries and illnesses. The 
proposed MOUs require closer monitoring, evaluation 
every 30 days and temporary assignments limited to a 
maximum of one year. If an employee is injured while 
earning acting assignment pay of a higher rank, that 
employee may receive compensation of the higher rank 
if injured after serving more than ten days and 
modified duty at the higher rank is limited to no more 
than 30 days. Previously, the modified duty 
assignment provisions did not include responsibilities 
for monitoring and evaluation. 

• Employee Training and Reimbursement: City will 
allocate $8,000 per year for the next two years of this 
MOU, or a total of $16,000, for tuition reimbursement 
for employees and such funds can be carried forward if 
not used in one fiscal year. Under the prior MOUs, the 
City allocated $5,000 in FY 1997-98 and $8,000 in FY 
1998-99. 

• Pre-retirement Seminars : Agreement to offer pre- 
retirement planning seminars on a semi-annual basis, 
with tuition reimbursement provided through the 
$8,000 annual allocation noted above. Previously, the 
MOU did not provide for such seminars. 

Comments: 1. Ms. Villagomez reports that these two proposed 

MOUs would only extend for two years, instead of four 
years as the previous Local 798, Bargaining Units 1 
and 2 MOUs did, to coincide with the expiration of the 
two other major pub he safety employee MOUs (i.e., 
Police and Sheriff), which also extend through June 
30, 2001. The proposed MOUs also provide for the City 
and Local 798 to agree on a negotiation schedule for 
the next MOUs by the end of December of 2000, or six 
months prior to the expiration of the proposed MOUs. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



2. The above described provisions of the proposed two 
MOUs relate to the major financial changes from the 
two prior MOUs. However, it should be noted that 
there are various other provisions in the two subject 
MOUs, including: (1) prohibiting discrimination based 
on gender identity, (2) the Fire Department's 
agreement to post union notices, when such notices are 
submitted in writing 72 hours in advance, (3) 
employees may continue to receive compensatory time 
off instead of paid overtime, but now it will require the 
approval of the Chief of the Fire Department, (4) 
adverse comments may not be placed in an employee's 
personnel file without that employee's notification, (5) 
new grievance procedures, and (6) an Intermittent 
Daily Vacation provision which codifies existing 
practices for using accrued vacation time. 

3. In addition, the Bargaining Unit 1 MOU provides 
that if the City creates any new uniformed Fire 
Department classification below the rank of Battalion 
Chief during the term of this agreement, those new 
classifications will automatically be included in 
Bargaining Unit 1 and covered by the terms of that 
agreement. Previously, the MOU did not specify future 
creation of new classifications. 

Another new provision in the Bargaining Unit 1 MOU 
is the Agency Shop provision which, Ms. Villagomez 
advises, is enabling legislation to permit a fair share 
service fee to be paid by those uniform employees 
within the Fire Department who are not members of 
Local 798, but who receive benefits negotiated by 
Local 798. Ms. Villagomez notes that membership in 
Local 798 is voluntary. Although the amount of such 
fees has not yet been determined, Ms. Villagomez 
reports that the Controller would deduct such fees 
from the employee's paychecks and remit such fees to 
Local 798. Ms. Villagomez further advises that the 
City receives an administrative fee from Local 798 to 
cover such payroll deductions. 

4. Another provision of the proposed MOUs which is 
particularly noteworthy regards the Fire Department's 
vacation accrual. The proposed MOU states that the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

8 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



City, through the Human Resources Department and 
Local 798 will meet within 30 days of the effective date 
of these MOUs to develop a plan that is consistent 
with Administrative Code Sections 16.11 and 16.12, 
which would become effective July 1, 2000. 
Administrative Code Section 16.12 states that the 
maximum accrual of vacation for all City employees is 
400 hours. However, Administrative Code Section 
16.11 acknowledges that uniform personnel in the Fire 
Department had previously accrued more than the 400 
maximum number of hours and required the Fire 
Department to bring the Department into compliance 
with the rest of the City by "no later than December 
31, 1989". 

Ms. Villagomez reports that the new MOUs provisions 
were included because Fire Department personnel 
have still been permitted to accrue up to 600 hours of 
vacation time, although the City's Administrative 
Code was very clear in specifically limiting accrued 
vacation time of up to 400 hours and addressing the 
previous Fire Department's exception. The Budget 
Analyst seriously questions why the Fire Department 
has not been in compliance with the provisions of the 
City's Administrative Code for the past ten years and 
why this provision is being included in this MOU, to 
give the Fire Department even more time to bring the 
Fire Department into compliance, when the City's 
Administrative Code Sections 16.11 specificallj 7 
addressed this issue and stated that such compliance 
would be completed "no later than December 31, 
1989". Furthermore, approval of this new MOU 
provision would mean that the Board of Supervisors 
would have no impact as to the final results of the 
vacation accrual plan which would be decided by the 
Department of Human Resources and Local 798 30 
days subsequent to the Board of Supervisors vote on 
these proposed MOUs. 

5. Despite the well-documented problems with Fire 
Department overtime, it should also be noted that 
there are no changes to the overtime compensation 
section of the proposed two MOUs, except the inclusion 
that compensation will be at one and one-half times 
the base hourly rate, except as otherwise required by 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

the Federal Labor Standards Act. Previously, the 
MOUs simply stated that overtime compensation 
would be at one and one-half times the base hourly 
rate. 

6. The Budget Analyst notes that the staffing for 
Chiefs Aides (H-10 Chiefs Operators under 
Bargaining Unit 1) would not change under the 
proposed MOUs for the Chief of the Department, who 
would continue to be assigned one Chiefs Aide 24 
hours a day. The Budget Analyst also notes that the 
previous MOU stated that each Battalion shall have 
one Chiefs Aide 24 hours each day, which will 
continue under the proposed MOU. However, the 
proposed MOU states that each Division shall also 
have one Chiefs Aide and one H-50 Assistant Chief on 
duty 24 hours each day. Ms. Villagomez reports that 
the addition of the Fire Department Divisions 
requirements for a Chiefs Aide and an Assistant Chief 
assigned on a 24-hour basis will not result in increased 
costs, since it will not result in an increase in staffing 
because the proposed change to the MOU simply 
codifies existing practice. 

The Fire Department's FY 1999-2000 budget includes 
50 Chiefs Operators at a total budgeted cost of 
$3,586,178, including fringe benefits and 11 Assistant 
Chiefs at a total budgeted cost of approximately 
$1,338,000, including fringe benefits. If the proposed 
MOU is approved, as of July 1, 1999, each Chiefs 
Operator's annual salary would increase to $71,112 
and each Assistant Chief in Fire Suppression's annual 
salary would increase to $120,142, assuming one 5.5 
percent salary increase, the 6 percent Hobday Pay 
Premium and one three percent Education Premium. 
Similarly, by July 1, 2000, each Chiefs Operator's 
annual salary would increase to $77,274 and each 
Assistant Chief in Fire Suppression's annual salary 
would increase to $130,552. To the extent that these 
employees qualify for other premiums or receive any 
overtime pay, their resulting annual salaries will be 
greater. 

The Budget Analyst questions why the proposed 
MOUs need to include specific staffing for Chiefs 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



Aides, Assistant Chiefs (in relation to the number of 
fire suppression Divisions) and Battalion Chiefs (in 
relation to the number of fire suppression Battalions), 
as well as other specific staffing levels, since the 
inclusion of such staffing levels then locks in these 
staffing levels and makes it extremely difficult, if not 
impossible, to be flexible in future budgets regarding 
actual staffing needs and funding requirements. 

7. The Budget Analyst notes that Education Incentive 
Pay Premiums, which are proposed to increase from a 
specific biweekly pay amount for each classification to 
a three percent increase as of July 1, 1999 and another 
three percent increase, for a total of six percent, as of 
July 1, 2000 result in an increase at an accelerating 
rate, since such premiums will now be based on a 
percentage of salaries rather than a fixed amount. 
Furthermore, including such Pay Premiums in 
computing retirement benefits will further increase 
the Fire Department's retirement costs for the City. 
Ms. Villagomez reports that such policies are 
comparable to those included in the current Police 
Officers Association MOU. 

In addition to the numerous changes in the proposed 
MOUs identified above, the Budget Analyst notes, and 
Ms. Villagomez acknowledges that there are two 
additional enhancements included in the proposed 
MOUs for the uniformed Fire Department emplo3 r ees 
than the existing Police MOUs currently provide for 
uniformed Police Department employees. As 
previously noted, one of these enhancements is the 
improved City paid health benefits for 75 percent of 
Kaiser Medical premiums for each employee plus two 
dependents, which Police Officers do not receive. As 
previously noted, the Fire Department MOUs also 
provide Administrative Assignment Pay Premiums, 
which the Police Officers do not receive. 

8. In summary, under the proposed MOU, a H-2 
Firefighter at the current maximum annual salary of 
$56,697 would receive (a) two additional 5.5 percent 
salary increases on July 1, 1999 and July 1, 2000, for a 
total of 11 percent; and (b) Hobday Pay of six percent 
of the base salary. Approximately 70 percent of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



employees would also receive the Education Incentive 
Pay Premiums of three percent on July 1, 1999 and 
another three percent on July 1, 2000, for a total of six 
percent, for a total additional compounded salary- 
increase of 25.2 percent, or $14,288, resulting in a 
total annual base salary of $70,985 beginning July 1, 
2000. The full amount of this increase in base salary 
will be used to compute retirement benefits for 
employees. The annual cost of the Holiday Pay 
provision of six percent will be offset by the 
elimination of Hobday Pay, averaging eight percent of 
base salary, for all members of the Fire Department 
whether they work the Holiday or not. However, 
existing Hobday Pay is not included as part of an 
employee's base salary for computing retirement 
benefits. In addition, H-2 Firefighters are likely to 
receive additional compensation for working any 
overtime hours, paid at time and one-half, and to 
receive other premium pay provisions, such as 
Administrative Assignment Pay, or Paramedic Cross- 
Training Pay, which are included in the proposed 
MOUs. Furthermore, the proposed MOU locks in 
staffing levels for one Chiefs Aide for the Chief of the 
Department, each Battabon and each Division, on a 
24-hour basis, without regard to future actual staffing 
needs or funding requirements. 

9. As explained previously, under the proposed MOUs, 
if a Fire Suppression employee calls in sick on a 
holiday when that employee is scheduled to work, and 
is therefore not able to work on that holiday, the 
employee would not receive the six percent premium 
just for that specific biweekly pay period. The proposed 
MOU specifies eleven holidays annuaUy. Therefore, if 
a Fire Suppression employee calls in sick on one 
holiday, thus necessitating an overtime shift to 
backfill for the absence, he or she has been absent for 
9.1 percent (one out of eleven) of the annual holidays. 
However, by not receiving the six percent premium for 
only one pay period, the Fire Suppression employee is 
only penalized by losing 3.8 percent (one pay period 
out of 26.1 pay periods annually) of the six percent 
premium salary. This provision of the proposed MOU 
may not sufficiently deter Fire Suppression employees 

BOARD OF SUPERVISORS 
BUDGET 2 ANALYST 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

from calling in sick on a holiday they are scheduled to 
work, therefore. 

10. As shown in the Attachment, the Controller's 
Office estimates the cumulative cost of implementing 
the two proposed MOUs to be $23,929,090, over the 
two-year period from July 1, 1999 through June 30, 
2001. For FY 1999-2000, the total estimated annual 
costs are $7,437,345 and for FY 2000-2001, the total 
estimated annual costs are $16,491,745, as compared 
to the FY 1998-99 costs. The Budget Analyst notes 
that the assumptions used by the Controller's Office to 
estimate the cost analysis of these MOUs appear 
reasonable, although the actual costs may vary. The 
additional cost of these proposed MOUs will be funded 
from the Salary and Benefits Reserve included in the 
FY 1999-2000 recommended budget. 

Recommendation: Approval of the proposed ordinances are policy matters 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

12a 



(-v- =>r LUNIKULLtK 



r\ u l. a \ 




I QTY AND COUNTY OF SAN FRANCISCO 



Pape 1 of. 2 
OFFICE OF THE CONTROLLER 



Edward Harrington 
Controller 



July 15, 1999 



Ms. Gloria L. Young, Clerk of the Board 

Board of Supervisors 

City Hall, Room 244 

1 Dr. Carlton B. Goodlctt Place 

San Francisco, CA 94102 

RE: Amendment to the Memorandum of Understanding with the San Francisco 
Fire Fighters Union Local 798 
File Numbers: 99-1032 and 99-1033 

Dear Ms. Young: 

In accordance with Ordinance 92-94, I am subminang a cost analysis of an amendment to Memorandum of 
Understanding between the City and Counry of San Francisco and the San Francisco Fire Fighters Union 
Local 798. The amendment covers the period July 1, 1999 through June 30, 2001, and affects 
approximately 1,627 employees with a salary base of approximately $98.9 million 

Based on our analysis, the amendment will result in incremental costs of approximately $7.4 milli on bo FY 
1999-2000, and $9.1 million in FY' 2000-2001. The amendment will result in cost increases of 
approximately 7.52% above base salaries in FY 1999-2000 and 8.68% above base salaries in FY 2000- 
2001 . Please see Attachment A for specific cost estimates. 



If you have additional questions or concerns please contact me or Peg Stevenson of my staff at 554-7500. 



Sincerely, 




Edward M 
Controller 



Alice Villagomez. ERD 
Harvey Rose, Budget Analyst 



<15-554-7500 



City UaU • 1 Dt. Carlton E. Goodlcti PUcc » Eoon 316 • Su fnaatco CA <Mltn-ic94 



FAX *15-&>t-f*t 



13 



Attachment A 

Firefighters Local 798 

Estimated Costs 1999-2000 to 2000-2001 

Controller's Office 

Annual Incremental Costs/CSa vings> 

Wage Increase 

5.5% on July 1. 1999 
5.5% on July 1,2000 

Holiday Pay Changes (Net) 1 

Overtime Savings 2 

Education Achievement Pay 5 
3% premium on July 1. 1999 
Additional 3% premium on July 1 , 2000 

Wellness Program* 

Hearth Premium for "Medically Single" Employees 

Wage-Related Fringe Increases 

Total Estimated Increment al Costs 

Annual Amount Above 1998-99 Level 

Cumulative Total Above 1998-99 Provisions 

Incremental Cost % of Salary Base 

1 Previously, firefighters earned time and one half for all holidays- Under the new MOU, fire suppression 
units win earn a 6% premium on base salary instead, resulting in an estimated cost of approximately 
$127,400. Non-suppression units will be paid for the hoOdays worked only, resulting in an estimated 
savings of approximately S558,500. for the net savings shown of $431,100. 

2 Under the new MOU. firefighters will no longer accrue compensatory time in lieu of holiday pay. This 
represents a long term reduction in the city's costs. This figure assumes that approximately 20% of 
the overtime that would have been used to cover for firefighters taking compensatory time is saved in 
each of the next two fiscal years. 

Assumes that 70% of members are eligible in each year of the contract As more members become 
eligible, this cost will increase. 

* Assumes that approximately 250 members (15%) are eligible and cash out up to 60 hours of sick 
leave per year beginning with the FY 2000-2001 fiscal year. While this program may allow the Fire 
Department to reduce overtime hours, we have not estimated an overtime budget decrease related 
to the Wellness Program at this time. 



FY199S-2000 


FY 2000-2001 


S5.440.369 






$5,739,589 


(431,137) 


(23.713) 


(267,300) 


(14,702) 


1.879J395 






2,191,479 




405.000 


102,488 




613.031 


756,746 


7,437,345 


9.054,400 


7.437.345 


16,491.745 




$23,829,090 


7.52% 


8.68% 



14 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-1269 



Department: 
Item: 



Amount: 
Description: 



Comments: 



Public Utilities Commission (PUC) 

Resolution authorizing the Public Utilities Commission to 
apply for and enter into loan agreements not to exceed 
$50,000,000 for the reimbursement of prior expenditures 
incurred for the construction of the Islais Creek / Rankin 
Street Transport Storage Facilities. 

Not to exceed $50,000,000 

Approval of this proposed resolution would authorize the 
PUC to apply for and enter into loan agreements not to 
exceed $50,000,000 with the State of California, acting 
through the State Water Resources Control Board 
(SWRCB). According to the PUC, the State Revolving 
Fund (SRF) loan proceeds will be used to defease 1 or 
retire outstanding 1995 Sewer Revenue Bonds (Series A 
and a portion of Series B, hereinafter 'Bonds'), which were 
issued for the construction of sewage treatment facilities. 
As reported by Mr. Phil Arnold, Director of Special 
Projects, of the PUC, the resulting debt service savings is 
$30,715,129 over the remaining 25-year life of the Bonds. 
The present value of the debt service savings is 
$19,027,997 or 38 percent of the total Bond defeasing 
principal of $50,000,000. 2 

Sewer Revenue Bonds were issued previously to finance 
the construction of the Islais Creek and Rankin Street 
Facilities (the 'Project'). Such facilities capture, store and 
transport combined sewage to the Southeast Treatment 
Plant from the drainage areas in the central portion of the 
City, which has resulted ■ in the enhancement, 
preservation and protection of the quality of water in the 
San Francisco Bay. 

1. The Controller has certified that (i) sufficient 
unencumbered balances are expected to be available to 
meet all payments due from the PL^C on the State loans 



1 Defeasance is the term used to describe the termination of all rights and interests of the 
bondholders upon final payment of all debt service, m the manner required by the terms and 
conditions of the bond resolution. 

2 Present value calculated using a discount rate of 2.745 percent. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



as they become due, and (ii) acceptance of the State loans 
to reimburse the PUC for funds previously expended to 
finance the Project is the most cost-effective method of 
financing the Project. 

2. As reported by the PUC, the proposed transaction 
would be similar to a typical bond refunding, except that 
the PUC would enter into a low-interest rate loan 
agreement with the SWRCB to secure loan proceeds to 
retire the Bonds rather than issue refunding bonds. 

3. As reported by the PUC, State Revolving Fund loan 
proceeds will be used to purchase an irrevocable escrow of 
U.S. Treasury securities, which would be sufficient to 
satisfy all principal, interest and redemption premiums 
on the outstanding Bonds. The escrow would defease or 
retire the outstanding Bonds, effectively removing the 
long-term debt liability from the PUC's financial 
statement. Subsequent to this escrow account funding, 
the PUC would only be responsible for the repayment to 
the State of the proposed State Revolving Fund loan 
principal and interest. 

4. According to Mr. Arnold, the interest rates on the 
State Revolving Fund loan proceeds would van - from 2.4 
to 3.4 percent and have an estimated composite rate of 
2.73 percent over the life of the loans. The composite 
interest rate on the State Revolving Fund loan proceeds is 
estimated to be 3.04 percent lower on average than the 
5.77 estimated composite interest rate on the Bonds being 
retired. As previously noted, the substitution of State 
Revolving Fund loan proceeds for Bond funds would 
reduce debt service costs by S30.715.129 over the 
remaining 25-year fife of the Bonds due to the lower 
interest rate on the loan proceeds. 

5. As reported by the PUC. 1995 Sewer Revenue Bonds 
(Series A and a portion of Series B) would be retired. 
These Bonds have coupon interest rates ranging from 
5.375 percent to 5.95 percent and maturities that extend 
to 2025. 

6. As reported by the PUC. the State Revolving Fund 
loan proceeds will be repayable over 20 years. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



7. According to Mr. Arnold, the interest rates on the 
State Revolving Fund loan proceeds may change prior to 
commitment, though an increase in the rate is not 
projected prior to commitment. Moreover, according to 
Mr. Arnold, in no case will the City use the State 
Revolving Fund loan proceeds should the rate on the 
loans be greater than the interest rate on the Bonds being 
retired. The loan proceeds must be committed by the end 
of the Federal Government fiscal year, or September 30, 
1999. 

8. According to Mr. Arnold, the related issuance costs, 
including escrow fees, total $25,000 and will be paid from 
PUC operating revenues, not loan proceeds. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

Item 4 - File No. 99-1278 



Department: 



Item: 



Amount: 
Source of Funds: 



Public Utilities Commission (PUC) 
Department of Public Works (DPW) 
Department of Parking and Traffic (DPT) 
Public Utilities Commission (PUC) 

Resolution approving tbe expenditure of funds for the 
emergency work to perform immediate remedial 
improvements to the sewers on (a) 3 rd Street between 
Jerrold and Palou Avenues, (b) Jennings Street between 
Dormer and Egbert Avenues and (c) Donner Avenue 
between Ingalls and Jennings Streets. 

$1,674,713 

Previously reserved funds from the sale proceeds of 1998 
PUC Sewer Revenue Bonds 



Description: 



Mr. P.T. Law of the DPW reports that 3 rd Street between 
Jerrold and Palou Avenues, Jennings Street between 
Donner and Egbert Avenues and Donner Avenue between 
Ingalls and Jennings Streets have been prone to flooding 
during moderate to heavy rainfall storms because the 
sewers tbere are unable to adequately support the 
rainwater runoff from such storms. 



According to Mr. Law, these sewers required immediate 
remedial improvements before tbe start of another rainy 
season in order to prevent further flooding of 3 rd and 
Jennings Streets and Donner Avenue, and thereby protect 
the health, welfare and property of the citizens of San 
Francisco. As such, on August 25, 1998, PUC declared 
that an emergency existed at the sewers located on 3 rd 
and Jennings Streets and Donner Avenue. In accordance 
with Section 6.30 of the Administrative Code, the PUC 
initiated expedited contract procedures for the subject 
emergency work, and awarded a contract to McNamara & 
Smallman Construction, Inc. which submitted the lowest 
quotation in the amount of $1,483,875. 

Attachment I, provided by DPW, contains a description of 
the subject sewer improvement work. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 
18 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 

Budget: The total actual project cost was $1,674,713, including 

$1,482,563 in actual construction costs (or $1,312 less 
than the contract award amount, see Comment No. 2); 
$111,150 for DPW engineering and construction 
management costs; $56,000 for DPW contract costs for 
construction inspection; S20.000 for Department of 
Parking and Traffic (DPT) traffic control costs; and $5,000 
for Public Utilities Commission (PUC) project 
management costs. 

A summary of this budget is as follows: 

Construction Contract $1,482,563 

DPW Bureau of Engineering " 97.150 

DPW Bureau of Construction Management 14.000 111,150 

DPW Contract for Construction Inspection 56.000 

DPT Traffic Control 20.000 

PUC Project Management 5.000 

Total SI. 674. 713 

Attachment II, provided by DPW, contains further budget 
details to support the subject sewer improvement work. 

Comments: 1. Invitations for proposals were faxed to 27 contractors 

on August 26, 1998. Six quotations were received by PUC 
from qualified contractors on August 31, 1998. PUC 
reports that McNamara & Smallman Construction, Inc. 
submitted the lowest quotation and was awarded the 
contract in the amount of SI. 483. 875. The following table 
lists the contractors who submitted quotations, the 
amounts of the quotations and the MBEAVBE/LBE status 
of the contractors: 

Contractor Quotation MBE'LBE Status 

McNamara & Smallman S1.4S3.875 LBE 

K.J. Woods Construction $1,514,000 LBE 

JMB Construction, Inc. SI. 871. 218 LBEAYBE 

NCCI/Shimmick $1,968,765 LBEAYBE 

Ranger Pipelines, Inc. SI. 946. 000 LBE 

Trinet Construction, Inc. $2,127,627 

2. PUC reports that although the contract was awarded 
in the amount of $1,483,875, the final contract cost, after 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

19 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



adjustment for actual quantities used during 
construction, was $1,482,563 or $1,312 less than the 
contract award amount of $1,483,875. 

3. PUC reports that the necessary work on three 
damaged sewers began on September 4, 1998, and was 
completed on December 2, 1998. 

4. Mr. Law reports that due to various delays in receiving 
expenditure documentation from the contractor, the PUC 
is requesting approval of this resolution over seven 
months after the construction work was completed. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

20 



-37/0S/99 



10:16 



SFDPU 30E HYDRAULICS ■* 415 252 0461 



NO. 595 5e2 

Attachment I 




AGENDA ITEM 



DEPARTMENT Utilities Engineering Bureau AGENDA NO 



MEETING DATE June S, 1999 



SUMMARY OF PROPOSED ACTION: 

Ratifying the Declaration of Emergency made by the President of the Public Utilities Comirussicn for Czzn Water 
Program Contract No. CW-202E. "3 re Street Sewer System Improvements. Phase I Emergency." and Reci-esnng 
the Board of Supervisors to approve the expenditure of funds to replace the hydrauhcally inadequate sewers on 
y Street between Jcrrold and Palou Avenues. Donner Avenue between lngalis and Jerjur.gs Streets, md Jennings 
Street between Donner and Ezbcrt Avenues. 



DESCRIPTION OF PROPOSED ACTION: 

The work performed under this Emergency consists of performing traffic routing work and L-ench support work, 
installation of 1 ,244 linear fee: of 33-inch. 30S linear feet of 36- inch, and 1,188 linear fee: of 42-inch diameter 
reinforced concrete pipe (RCP), 26 linear feet of 1 8-inch, 25 linear feet of 2 1 -inch, and 27 linear fee: of 24-inch 
diameter vitrified clay pipe (VCP) encased in reinforced concrete, 1 0-inch diameter VCP culverts, 1 6 concrete 
manholes, catchbasins, and two juncuon structures, side sewer connecuons, videotaping/repairing existing side 
sewers; removing existing sewers and structures; and all related inadentai work. This work included al] planning, 
design, and construction support services (under Job Order No. 1622N). 

The invitations for proposals were faxed to twenty-seven (27) contractors on August 26, 1998. 



APPROVALS: 



UTumESEMSR 

■UR£AU 



SEnnrr*»y 



Steves C<LrrJ.c^£el 



Qua 



Romaine A. Boldridce 



21 



3S/99 



10:16 



SFDPU 30E HYDRALL1CS ■* 415 252 0461 



NO. 595 

Attachment 



501 
II 



Cost Breakdown for ( J.O. #1622N, Contract #CW-2Q2E) 
3RD Street Sewer System Improvement 
Phase I Emergency 

Bureau of Engineering 



Classification 


Title 


Rate 


Hours 




Cost 


5504 


Project Manager 11 


$ 


82 


45 


S 


4,140 


5206 


Associate Civil Engineer 


$ 


75 


172 


$ 


12,900 


5202 


Junior Ctvfl Engineer 


$ 


50 


498 


$ 


24.900 


5366 


Cnnl Engineering Associate II 


$ 


60 


633 


s 


37,980 


5381 


Engineering Student Trainee II 


$ 


33 


229 


$ 


7557 


1426 


Secretary 


$ 


43 


225 


s 


9,575 



Rounded: $ 



97,152 
87,150 



Bureau of Construction Management 



Classification 


Title 


Rate 


Hours 




Cost 


5210 


Senior Civil Engineer 


5 100 


7 


S 


700 


5208 


Civil Engineer 


$ 80 


10 


s 


800 


5204 


Assistant Civil Engineer 


$ 59 


104 


$ 


6,136 


6318 


Construction Inspector 


S 74 


86 


s 


6.364 



Total $ 



14,000 



Department of Parking & Traffic 

Consultant (Construction Management) 

Public Utilities Commission (Project Management) 



S 20.000 

$ 56,000 

$ £.000 



Total S 



61,000 



Post-ir* Fax Note 



767 T 



i£l 



2B5Z. 



To 



r 71 r ^ 



~gggd2<5ZZ. 






22 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



Item 5 - File 99-1301 

Department: 

Item: 



Location: 

Lessor: 
Lessee: 
Description: 



Airport 

Resolution requesting approval of a lease modification 
between American Airlines, Inc. and the City and County of 
San Francisco, acting by and through its Airport 
Commission. 

Boarding Area E, North Terminal Building, San Francisco 
International Airport 

City and County of San Francisco 

American Airlines, Inc. 

American Airlines, Inc. is the sole lessee of Boarding Area 
E in the North Terminal of the Airport, and currently has a 
30-year lease with the Airport for use of 136,036 square 
feet of space. The lease expires June, 2011. American 
needs an additional 639 square feet of space for its 
Admirals Club. Such space is currently used by the Airport 
as a Smoking Room, which the Airport plans to eliminate 
due to lack of use. In exchange for the 639 square feet of 
space needed by American, American would relinquish 210 
square feet of leased space in Boarding Area E. The 
exchange of space would result in a net increase of 429 
square feet to be leased by American Airlines from the 
Airport. 

The proposed resolution would modify the existing lease 
agreement between American Airlines and the Airport as 
follows: 

• American Airlines would relinquish 210 square feet, 
which it currently leases from the Airport in Boarding 
Area E. Such space would be used by the Airport for 
additional food and beverage concession space. 

• In exchange, the Airport would lease an additional 639 
square feet to American, presently used b} T the Airport 
as the Smoking Room. American Airlines would use 
such additional space to expand its Admirals Club 
which currently contains 1565 square feet. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



Comments: 



1. As previously noted, the proposed lease modification 
would result in a net increase of 429 square feet of space for 
American. The additional rent that the Airport would 
receive annually from American Airlines, due to the 
increased square footage to be leased by American, is 
$30,612.63 per year, as shown in the table below. 



Square Feet 



Annual Increase / 
Annual Cost Decrease in 

Per Square Foot Airport Revenues 



Space relinquished by 
American Airlines 
to the Airport 
(Category I space)* 

Additional space to be 
leased to American Airlines 
(Category II space)** 

Net additional annual 
rental revenues to be paid 
by American Airlines to 
the Airport for 429 
additional square feet 



210 



639 



$113.69 



85.27 



($23,874.90) 



54.487.53 



$30,612.63 



* Category I is defined as space that is used for ticket 
counters and hold-rooms. 

** Category II is defined as space that is used for ticket 
counter back offices, MP clubs and lounges, and other 
purposes. 

2. Mr. Gary Franzella, Assistant" Deputy Airport Director, 
advises that the amount of $52,261 for annual additional 
rent paid by American Airlines, which is stated in the 
proposed resolution, is incorrect, and that the correct 
amount is $30,612.63. Therefore, the proposed resolution 
should be amended to reflect the correct amount of 
additional annual rental revenues payable by American 
Airlines to the Airport. 

3. According to Mr. Franzella, the Airport estimates an 
annual increase in revenue to the Airport of $380,432 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

July 21, 1999 Finance and Labor Committee Meeting 



Recommendation: 



resulting from a new food and beverage concession that 
would occupy the 210 square feet of space to be 
relinquished by American and an additional 185 square 
feet of adjacent Airport space, totaling 395 square feet. The 
Airport estimates that the total increase in annual rental 
and concession revenue to the Airport would be $411,045 
($380,432 plus $30,613). 

4. Mr. Franzella advises that the 210 square feet of 
additional food and beverage concession space would be 
operated by Host International, Inc., which has the 
exclusive rights for the sale of food and beverages in 
Boarding Area E in the North Terminal, as explained by 
Mr. Franzella in his attached memorandum. 

1. Amend the proposed resolution to reflect that the correct 
amount of additional annual rent to be paid by American 
Airlines to the Airport is $30,612.63, and not $52,261. 

2. Approve the proposed resolution, as amended. 



'h^y 2 ^. 



Harvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 




• FROM SF'A DEPARTMENT OF AVIATION MANAGEMENT (TKU) 7. lb 99 H:l//bi. l*:lZ/«u. Wbl M'jU r I 



AIRPORT COMMISSION 

SAN FRANCISCO INTERNATIONAL AIRPORT 

CITY AND COUNTY OF SAN FRANCISCO 

MEMORANDUM 



TO: Severin Campbell DATE: July 15.1999 

Budget Analyst's Office 

FROM: Gary Franzel 

Assistant Deputy Ai 
Aviation Managi 



RE: American Airlines Lease Modification #8 



This will confirm our conversation regarding the handling of the concession space 
involved in the above referenced space swap and lease modification. The Airport has 
determined that the best use of the 210 sq. ft. space is a food and beverage concession. 
Under an existing Master Concession Food and Beverage Agreement, Host International, 
Inc, (Host) has the exclusive rights for the sale of food and beverages for immediate 
consumption in the existing terminal building complex, including Boarding Area "E", 
where this space is located. Their exclusivity does not extend into the New International 
Terminal. 

Host currently ha* over 1 10,000 square feet of food and beverage space under the Master 
Concession Agreement. The agreement is structured in a way to ensure that Host is able 
to remain current with changing concepts and consumption trends. In accordance with an 
Expansion/Contraction clause within the agreement, the Airport will occasionally 
request that Host add concepts to meet our passengers' demands. Changes of this nature, 
because they are provided for in the Master Food and Beverage Concession Agreement, 
do not require Board of Supervisors approval. 

Host currently pays concession rent equal to 9.24% on all food and noD-alcoholic 
beverages and 15.249r on all alcoholic beverages. With this addibonal location, the 
Airport expects overall food and beverage sales to increase with resultant Airport revenue 
increases per these percentages. 



Please contact me if you require any additional information. 



cc: 

Bob Rhoades 

Lorri Vasqucz 



26 



fc.*?5V 




City and County of^San Francisco 

Meeting Minutes 
^Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dt Carlton B 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, July 28, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Tom Ammiano. 
Members Absent: Sue Bierman. 



Meeting Convened 

The meeting convened at 10: 14 am. 

REGULAR AGENDA 



991303 [Increase in grant funds to continue services of the K-9 Explosives Detection Team Program for 
response to bomb threats at the Airport) 

Resolution authorizing the Airport Commission to accept and expend a funding increase from $708,000 to 
$1,202,500 or subsequent increases from the Federal Aviation Administration for the K-9 Explosives 
Detection Program. (Airport Commission) 
6/30/99. RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Harvey Rose, Budget Analyst, Jon Ballesteros, Airport Amendment of the 
Whole further amended to place $182,000 on reserve. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Resolution authorizing the Airport Commission to accept and expend a funding increase from $708,000 to 
$1,202,500 from the Federal Aviation Administration for the K-9 Explosives Detection Program; placing 
$182,000 on reserve. (Airport Commission) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 2 - Yee, Ammiano 



Absent: 1 - Bierman 



DOCUMENTS DEPT. 
AUG 6 1999 

SAN FRANCISCO 
p UBLIC LIBRARY 



City and County of San Francisc 



Printed at 3:26 PM on "4&W 



Finance and Labor Committee 



Meeting Minutes 



July 28, 1999 



991327 (Disposition process for real Property and providing that the proceeds from the sale of property be used 
for transportation purposes to the extent required by Section 72 of the Streets and Highways Code| 
Supervisor Katz 

Ordinance approving and authorizing a request for proposals process for the disposition of certain real 

property located between Spear and Main Streets near Folsom Street, comprising a portion of the former 

Caltians right-of-way and described as Block 3740, Lot 27; requiring that the final agreement for disposition 

and development of the property be subject to Board of Supervisors approval by resolution; and adopting 

findings that the proposed disposition process is consistent with the City's General Plan and eight priority 

policies of Planning Code Section 101.1. 

7/12/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Kiomque Moyer, Mayor's Office of Economic 

Development; Supervisor Yee; Supervisor Ammiano, Tony DeLucchi, Real Estate Department 

CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



991391 (Permitting non-city workers to perform work for the City, instead of CitJ employees, because the non- 
city workers can perform the work at a lesser cost than City employees Shuttle Bus service at Airport] 

Resolution approving the Controller's certification that Shuttle Bus Services for San Francisco International 

Airport's Long-Term Parking Lot and the employee Garage DD can practically be performed by private 

contractor at a lower cost than if work were performed by City and County employees at presently budgeted 

levels. (Airport Commission) 

7/14/99. RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Harvey Rose. Budget Analyst. Jon Ballesteros, Airport 

RECOMMENDED by tbe following vote: 

Ayes: 2 - Yee. Ammiano 

Absent: 1 - Bierman 



ADJOURNMENT 

The meeting adjourned at 10 46 a.m. 



City and County of San Francisco 



Printed ml 3:26 PM on "?*?» 



Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 41 



CITY AND COUNTY 




OF SAN FRANCISCO 

/ 



POARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



July 23, 1999 
TO: Finance and Labor Committee 

FROM: Budget Analyst 

SUBJECT: July 28, 1999^inance and Labor Committee Meeting 



Item 1 - File 99-1303 

Department: 

Item: 



Amount: 
Source of Funds: 
Program: 
Program Period: 
Description: 



Airport 



DOCUMENTS DEPT 

JUL 2 7 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



Authorizing the Airport to accept and expend an increase 
in grant funds of $494,500, from $708,000 to $1,202,500, 
from the Federal Aviation Administration for the 
Airport's K-9 Explosives Detection Team Program. 

A minimum of $494,500 

Federal Aviation Administration (FAA) 

K-9 Explosives Detection Team Program 

October 1, 1998, to September 30, 1999 

The proposed resolution would authorize the Airport to 
accept and expend FAA grant funds m the amount of 
$494,500. These funds are granted as reimbursement to 
the Airport for expenditures incurred for the Airport's K-9 
Explosives Detection Team Program between October 1, 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



Budget: 



Required Match: 
Comments: 



1998 and September 30, 1999, but are available for 
expenditure by the Airport on expansion of the Program. 

In January and August of 1998, the Board of Supervisors 
approved two resolutions (Nos. 22-98 and 708-98) 
authorizing the Airport to accept and expend FAA grant 
funds of $708,000. These funds were granted as 
reimbursement to the Airport for expenditures incurred 
for the Airport's K-9 Explosives Detection Team Program 
between March 23, 1997 and September 30, 1998. 

This subject request is to authorize the acceptance and 
expenditure of additional FAA grant funds of $494,500. 
These funds would be granted as reimbursement to the 
Airport for the expenditures incurred for the K-9 
Explosives Detection Team Program between October 1, 
1998 and September 30, 1999 for: dog handler salaries, 
overtime, uniforms, travel and training; dog food, 
veterinary care, and kenneling; vehicles and vehicle 
maintenance; and explosives travel and training. 

According to Lt. William Gitmed of the Airport's K-9 
Explosives Detection Team, the FAA grant funding 
increase of $494,500 will be expended on the items 
specified in the Attachment, the details of which have 
been provided by the Airport. 

None 

1. As shown in the Attachment, the Airport has provided 
budget details for $312,500 of the total grant of $494,500. 
Budget details for the balance of $182,000 have yet to be 
finalized. 



2. The K-9 Explosives Detection Team, which includes 
one Airport Police Sergeant, seven Airport Police officers, 
and eight dogs, responds to bomb threats at San 
Francisco International Airport. Additionally, according 
to Lt. Gitmed, the Team responds to other Bay Area 
airports, and other municipalities, on an as-requested and 
as-available basis. In particular, the Team provides 
explosives detection services to the 23 law enforcement 
agencies within San Mateo County under a mutual 
assistance agreement with San Mateo County. In 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 

response to mutual assistance requests, each party agrees 
to assist the other at no cost. Responding to most 
requests made under the mutual assistance agreement is 
accommodated within normal staffing levels. However, 
when the Team does incur overtime and other additional 
costs, the Airport bills the FAA for reimbursement of 
those costs. 

3. According to Lt. Gitmed, the FAA grants reimburse 
the Airport for expenditures incurred for the Airport's K-9 
Explosives Detection Team Program. Mr. Cesar Sanchez 
of the Airport advises that expenditures incurred for the 
K-9 Explosives Detection Team Program are advanced 
from Airport operating revenues. The K-9 Explosives 
Detection Team submits all its expenditures to the FAA, 
which partially reimburses the Airport. To date, the 
minimum reimbursement made by the FAA is $52,000 
per year, per dog, for six of the dogs, for a minimum total 
reimbursement of $312,000. Reimbursement in excess of 
$312,000 has occurred because of the availability of 
surplus FAA funds. The FAA allows the Airport to 
expend the FAA grant funds it receives within a number 
of specified expenditure categories. Lt. Gitmed confirms 
that the Airport's expenditures to date against FAA grant 
funds meet the expenditure specifications of the 
Cooperative Agreement between the FAA and the Airport. 

4. Lt. Gitmed advises that the subject increase in grant 
funds, in the amount of $494,500, comprises a Federal FY 
1997-98 FAA grant in the amount of $182,000 and a 
Federal FY 1998-99 FAA grant in the amount of 
$312,500. 

5. As of the writing of this report, the Airport does not 
have budget details for the Federal FY 1997-98 FAA 
grant of $182,000. Therefore, the $182,000 should be 
reserved. 

Recommendations: 1. Amend the proposed resolution to reserve $182,000, 

pending submission by the Airport to the Board of 

Supervisors of budget details, in accordance with 
Comment No. 5. 

2. Approve the proposed resolution as amended. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Al/ptn 



Dry j no County 
of San Frencitco 
Wll.f L Brown. Jr. 
Miyor 

Metvrv E. B«nna/i 
Prtstoem 

Larry Monola 
Vice frmtitnl 

Uimii, £. St7unu> 

Lrno* S. Cmmn 

Caryl Ito 

JOHNLMARTIK 
Airport Dwc«or 




Annrhmmi 



San Francisco International Airport 



Oi'lmr TO TH1 fianc 



PROPOSED BUDGET FOR THE FAA GRANT OF S494,5O0 



Qty Description 


Unit 
Cost 


Total 


Federal FY 1997-98 FAA Grant of $182,000 




SI 82.000 


Future Expansion Reserve Fund 


Subtotal 




182,000 


Federal FY 199S-99 FAA Grant of S3I2.500 






Operating Expenses for 12 months 


Monthly K- 9 Food 


$700 


8,400 


Monthly Vet Care 


915 


10.980 


Monthly Kenneling 


175 


2,100 


Monthly Vehicle Maintenance and Repairs 


S25 


9,900 


Conference Travel and Per Diem 


500 


500 


Programmatic Overtime 


- 


67.380 


Program Enhancements 






2 Chevy Tahoc 4- Wheel Drive Vehicle 


41,160 


£2,320 


2 Emergency Light Bar and Equipment 


4,230 


8.460 


6 Panasonic In- Vehicle Laptop Computer 


6.000 


36,000 


6 Laptop Computer Software 


3,000 


18,000 


6 Laptop Computer Mountings, etc 


1300 


7,800 


6 Motorola In-unit Police Radios 


4,600 


27,600 


6 In-umt SMSO Radios 


3,313 


19,878 


6 Chevy Tahoe Vehicle Painting Black/White 
Subtotal 


$2,197 


13.182 


312.500 


GRAND TOTAL 




$494,500 



SAN FRANCISCO IKTONATI0NAL AIRPORT . R0. BOX MR . SAK FRANCISCO ULW)Wia».Mm-m£rHOp^lS5O)Ti*-5O0C.rV«tia »»-S3Ci 

4 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 

Item 2 -File 99-1327 



Department: 



Item: 



Location of 
Subject Property: 



Description: 



Mayor's Office of Economic Development (MOED) 
Real Estate Department (DRE) 

Approving and authorizing a Request for Proposals (RFP) 
process for the sale of certain City-owned real property 
located between Spear and Main Streets near Folsom 
Street, comprising a portion of the former Caltrans right- 
of-way and described as Block 3740, Lot 27; requiring 
that the final agreement for disposition and development 
of the property be subject to Board of Supervisors 
approval by resolution; and adopting findings that the 
proposed disposition process is consistent with the City 
General Plan and Eight Priority Policies of City Planning 
Code Section 101.1. 

The City-owned real property proposed for sale 
(hereinafter, the "Property") is located in the South of 
Market District and is bounded by Spear Street on the 
east, Main Street on the west, 221 Main Street on the 
north and several private parcels located along Folsom 
Street on the south. The Property is described generally 
as Assessor's Block 3740, Lot 27. Attachments 1 and 2, 
provided by MOED and DRE, are an Area Map and 
Assessor's Map, respectively, with the Property proposed 
for disposition so marked. 

The Property, which comprises part of the former 
Caltrans right-of-way for Route 480, was transferred by 
the State of California to the City at no cost following the 
Loma Prieta earthquake. The City acquired the Property 
from the State of California pursuant to Resolution No. 
878-96 and Section 72 of the California Streets and 
Highways Code. Today, the Property is used as a parking 
lot and contains approximately 34,057 square feet of land. 
Under the proposed RFP, the sale of the Property is 
contingent on the successful negotiation of a Disposition 
and Development Agreement (DDA) and a Purchase and 
Sale Agreement (PSA) between the City, through the 
DRE and MOED, and the developer, as well as approval 
of both of these agreements by the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



Proposed Development on Subject Property 

The proposed ordinance authorizes the Director of 
Property to seek proposals for the purchase of the 
Property and the development of a mixed-use project 
through a Request for Proposals process to achieve the 
goals of not only generating proceeds from the sale of the 
Property but also in providing for the development of a 
project that is compatible with the surrounding 
neighborhood, energizing the developing residential 
community in the areas, increasing vital street life 
necessary to attract additional residents and visitors, and 
augmenting the City's supply of affordable housing. 
According to Mr. Blout, based on the zoning designations 
for adjoining property, the mixed-use development may 
have up to a maximum of 272 multifamily residential 
units depending on the final Disposition and Development 
Agreement (DDA) negotiated and approved and on final 
entitlements granted by the Planning Commission and 
the Board of Supervisors. 

The proposed ordinance states that the preferred 
development program for the Property shall include (i) 
residential development, including affordable housing 
that meets or exceeds a requirement that 20% of the units 
(approximately a minimum of 54 units) be provided at 
50% or below the area median income, and (ii) 
cultural/performing arts, destination retail and/or 
entertainment uses, as described in the RFP. The 
development program may also include a complementary 
office space component. According to Mr. Blout, the final 
aspects of the development, including total sq. footage and 
development cost estimates, will not be known until a 
final DDA is negotiated between the DRE, MOED and 
developer and final entitlements are granted by the 
Planning Commission and the Board of Supervisors. The 
final DDA must then be submitted for approval to the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 

Findings Under the Proposed Ordinance 

According to Mr. Jesse Smith, Deputy City Attorney, the 
proposed sale, under an RFP process, is consistent with 
Section 72 of the California Streets and Highways Code, if 
the proceeds for its sale are used for transportation 
purposes. However, Mr. Smith also reports that Section 
72 does not preclude the City from using a competitive 
public auction instead of an RFP. 

Mr. Gerald Green, Director of Planning, states in a letter 
dated July 8, 1999 that the land use, urban design and 
transportation objectives described in the RFP are 
consistent with the General Plan policies and objectives. 

Comments: 1. Attachment 3 is a memorandum, dated July 22, 1999, 

provided by Mr. Anthony DeLucchi, Director of Property, 
which explains why the subject property, consisting of 
34,057 sq. feet of land, is being sold through an RFP 
process and not through a competitive public auction 
process. 

2. In view of the fact that the identical project 
development provisions specified in the RFP process could 
be specified in a competitive public auction process, there 
is nothing in Section 72 of the California Streets and 
Highways Code to preclude the City from using a public 
auction process, which would require that the sale of the 
Property be made to the highest, most responsive bidder 
based solely on price, as long as the bidder meets the 
City's project development provisions. 

3. Ms. Barbara Moy, Chief of DPWs Street Use and 
Mapping Bureau, reports that the City does not need the 
Property for present or prospective street purposes. 

4. According to Mr. Larry Ritter, Principal Real Estate 
Officer, of the DRE, the Property is currently operated as 
a parking lot under a lease agreement with K.T. Park Inc. 
The Property generates annual rental revenues of 
$336,048 for the City under a month-to-month lease, 
which was taken over by the City from the State when the 
Property was transferred to the City from the State at no 
cost to the City. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



5. As stated in the RFP, the minimum bid price for the 
Property is $6,200,000. Moreover, the developer will be 
responsible for any hazardous materials remediation on 
the Property. 

6. According to Mr. DeLucchi, the minimum bid for the 
Property will be set at $6,200,000, or approximately 
$182.05 per square foot, which is approximately 61 
percent of the appraised fair market value (FMV) of 
$10,200,000 for the Property, which assumes development 
with typical affordable housing requirements. Mr. 
DeLucchi states in his memorandum that the reason why 
the City is not requiring that the Property be sold at full 
FMV is because of the City's required affordable housing 
component in its preferred development program. Mr. 
DeLucchi also states that the Property would be worth 
substantially less than the $10,200,000 FMV. if it were 
sold as presently zoned, "P" or public use. Further 
explanation is provided in Attachment 3. 

7. According to Ms. Tina Olson, Finance Manager of 
DPW, the sale proceeds from the Property will be 
allocated, subject to appropriation approval of the Board 
of Supervisors, to transportation purposes as prescribed 
by Section 72 of the California Streets and Highways 
Code. Since the sale proceeds cannot be used for General 
Fund purposes, they will instead be used for repayment of 
funds earlier provided by the Transportation Authority 
for the Mid-Embarcadero Roadway Project. 

8. According to Mr. Blout, the Property was transferred to 
the City by the State at no cost following the Loma Prieta 
earthquake subject to Section 72 of the California Streets 
and Highways Code. This State statute obligates the City, 
(a) to construct a system of ramps and streets pursuant to 
a joint agreement with Caltrans, and. (b) to utilize the 
Route 480 right-of-way, or the proceeds for its sale, solely 
for the construction of a transportation system. Hence, 
the proposed ordinance requires the net proceeds from the 
sale of the property to be used for transportation purposes 
to the extent required by Section 72. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



9. As stated in the RFP, the financial objectives include 
(a) the maximization of the sale price to the City for the 
Site consistent with the Community Benefit Objectives 
and (b) the maximization of economic return to the public 
through tax generation and job creation. 

The four Community Benefit Objectives are: 

• Create or retain jobs for San Francisco residents, 
especially economically disadvantaged residents. 
Participate in the City's First Source Hiring Program 1 , 
as required by City ordinance. 

• Provide minority and women-owned business 
enterprises with an equal opportunity to compete for 
and participate in project development and operations. 

• Provide opportunities to San Francisco youth, 
especially economically disadvantaged youth, through 
appropriate training and entry-level hiring programs. 

• Expand the City's inventory of affordable housing 
units. 

10. As stated in the RFP, all proposals are to be hand 
delivered to MOED no later than 30 days after Board of 
Supervisors approval of this ordinance. According to Mr. 
Blout, the 30-day deadline is customary for these types of 
projects, and an aggressive marketing campaign will be 
undertaken including advertising in the Wall Street 
Journal as well as leading trade and local publications. 

11. The Budget Analyst questions whether a 30-day time 
period is sufficient to obtain comprehensive proposals 
from all potential developers. However, as previously 
noted, according to Mr. Blout, 30 days is the customary 
time period for responding to a development RFP. 

12. Attachment 4, provided by Mr. DeLucchi, explains how 
the project will be marketed. As of the writing of this 
report, the mailing list for the RFP is still being 
developed. 



1 Under the First Source Hiring program, the City would have the first opportunity to refer 
economically disadvantaged individuals for entry level employment before the employer 
seeks emplovees from other sources. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 

13. Under the proposed ordinance, the Board of 
Supervisors would authorize the Director of MOED and 
the Director of Property to make any additions, 
amendments or other modifications to the RFP that the 
Director of MOED and the Director of Property determine 
are in the best interests of the City, consistent with the 
intent and purpose of the proposed ordinance. However, 
as previously noted the final Disposition and 
Development Agreement and the Purchase and Sale 
Agreement are subject to approval of the Board of 
Supervisors. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

10 



JUL-22-1999 10:52 



CCSF REAL ESTATE DEPT 

ATTACHMENT 1 



415 552 9216 P. 03/12 



re 

S 

re 
o 




DioOQ 

fehtg * ^ n , 

, lUrs — '•PUR otM»» J 

isKUysaSttiuarrv 






11 



-*_or kchl fcblHIfc DSPT 



ontiiwrM 



Assessor's Map j 



LOTS UUUD 



415 552 9216 P. 04/12 
ATTACHMENT 2 



3740 




tog *jk«*^^>. j,« 



FOCSOM 



tt 



12 



JUL-22-1999 10:54 



CCSF REAL ESTATE DEPT 



415 552 921S P. 09/12 



City and County of San Francisco attachments 3 & 4 Real Estate Department 

Office of the 
Director of Property 

MEMORANDUM 



July 22, 1999 




Sent Via E :Mail and Facsimile 
(252-0461) 



TO: Todd Rydstrom 

Budget Analyst 



FROM: Anthony J. DeLu 

Director of Property £X. 

SUBJECT: 99-1327 

Spear Street Disposition 




W^ 



As requested, please see attachments 1 and 2. 



S64-M60 
FAX: V2-«216 



2S Vmi Mm« Avwum, Sute 400 



San Franclaco, M1Q2 



13 



ATTACHMENT 3 
(Page 1 of 2) 



Why the Property is not being sold through a competitive bid or public auction 
versus an RFP? 

The MOED requested that an RFP process be used for the disposition of this property 
to meet the project goals and objectives as set forth in the draft Request for Developer 
Proposals. 

In addition, the property is being sold through the RFP process to ensure that 
development of the site is in accord with the preferred development program, i.e. 

> Residential development, including affordable housing units. For this project, the 
City has set a goal that a minimum of 20 percent of housing units be affordable to 
households whose annual income is no higher than 50 percent of the median 
income for the San Francisco Metropolitan Area as determined by the U.S. 
Department of Housing and Urban Development (HUT)). All affordable units 
shall be either rental and or condominium and shall be affordable for a minimum 
of 50 years. 

> Cultural/performing art uses, destination retail and/or entertainment uses that will 
energize the area and attract residents and visitors. 



Please include verification that this Property will go to the highest, most 
responsive bidder. 

Completed proposals will be reviewed and evaluated by a Selection Panel comprised 
of the Director of the Mayor's Office of Economic Development, the Director of the 
Mayor's Office of Housing, the Director of Property, and the Director of the 
Department of City Planning. 

Following evaluation of the proposals, the Selection Panel will make a 
recommendation to the City Planning Commission, for their approval, to enter into 
exclusive negotiations with one of the respondents. Price is only one of the factors 
that will be considered in addition to the other stated criteria. The legislation 
establishes a S6.2 M. bid price. The bid must be at least S6.2 M. to be responsive. 

A Disposition and Development Agreement (DDA) will be negotiated with the 
selected developer subject to the approval by the Board of Supervisors, by resolution, 
in their absolute discretion, after completion of all required environmental review 
under CEQA. 



14 



ATTACHMENT 3 
(Page 2 of 2) 



Outline FMV under proposed use in a competitive bid environment as well as in 
an RFP environment 

If S6.2 million is less than FMV in a competitive bid environment, what is the 
justification for the City not getting a competitive bid FMV? 

The site has been appraised by an independent appraiser assuming entitlements under 
the preferred development program (the property is currently zoned "P" ((public use)) 
and is not entitled for private development). Its value as of June '99 is S6.2M. based 
on an appraisal prepared by Chris Carneghi of Carneghi-Bautovich & Partners, Inc. 

Mr. Cameghi's value of the site with a typical affordable housing requirement of 10% 
of the units at 60% of the HUD median is $10,200,000. His opinion of value is S6.2 
M. based on a development calling for the additional affordable housing (minimum 
20% @ 50% of HUD median income). 

Its value would be substantially less than S10.2M., possibly as low as $5 M. if it were 
sold with a "P" zoning, lack of entitlements, and uncertainty of development 
potential. 



How will proceeds be used/allocated? 
What restrictions apply to the proceeds? 

This proposed Ordinance which is consistent with the State legislation by which the 
City acquired this former Embarcadero Freeway parcel from Caltrans, requires the 
sale proceeds to be used for certain transportation purposes, to the extent mandated by 
California Streets and Highway Code Section 72. 



15 



ATTACHMENT 4 



How will the Property be aggressively marketed? 
List all parties who will receive the RFP. 

It is proposed that the property will be appropriately advertised in newspapers and 
real estate related business periodicals, e.g., the Wall Street Journal . San Francisco 
Business Times , etc. 

The PUC, Port, and Redevelopment Agency have recently released RFPs for major 
development projects. We are presently compiling a mailing list from lists developed 
by these departments. 



• How long will they have to respond to the RFP, and the reason for that amount 
of response time (30 days?). 

The Request for Developer Proposals is a draft only. According to the MOED the 30- 
day response time is customary and consistent with other proposals. This response 
period is subject to further discussion and could be extended. 



I :\users\LR\RFPEmF w .doc 



16 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



Item 3 -99-1391 

Department: 

Item: 



Services to be 
Performed: 



Description: 



Airport 

Resolution concurring with the Controller's certification 
that shuttle bus services for San Francisco International 
Airport's Long-term Parking Lot and Employee Parking 
Garage can continue to be practically performed by 
private contractor at a lower cost than if work were 
performed by City and County employees. 

Shuttle bus services for San Francisco International 
Airport's Long-term Parking Lot and Employee Parking 
Garage, located at the North end of the Airport on South 
Airport Road. 

Charter Section 10.104 provides that the City may 
contract with private firms for services which can be 
practically performed for a lower cost than similar work 
by City and County employees. 

The Controller has determined that contracting for the 
shuttle bus services at the Airport for FY 1999-2000 
would result in estimated savings as follows: 



City-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Service Costs 



Lowest 

Salary 

Step 

$3,968,536 

987.811 

* 4,956,347 

4.532.014 



Highest 

Salary 

Step 

$4,041,119 

998.931 

5,040,050 

4.532.014 



Estimated Savings $ 424,333 $ 508,036 

* Totals differ from the Controller's analysis due to rounding. 



Comments: 



1. Shuttle bus services consist of providing free ground 
transportation to airline passengers and employees 
between both the Airport long-term parking lot and the 
employee parking garage and the Airport terminals. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



17 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



2. The Airport reports that shuttle bus services for San 
Francisco International .Airport were first certified under 
Proposition J, (Charter Section 10.104), in FY 1974-75 
and have been continuously provided by an outside 
contractor since that time. 

3. According to Ms. Alice Sgourakis of the Airport, the 
Airport awarded a ten-year contract to SFO Shuttle Bus 
Company, which operates the long-term parking and 
employee garage shuttle bus service, effective January 1. 
1998. The proposed resolution would approve the 
Controller's certification for the second full fiscal year of 
the 10-year contract, from July 1, 1999 through June 30, 
2000. 

4. The Contractual Services Costs used for the purpose of 
this analysis is based on the SFO Shuttle Bus Company 
projected FY 1999-2000 costs to provide the shuttle bus 
service at the Airport. 

5. The estimated FY 1999-2000 Contractual Services 
Cost of $4,532,014, is $1,222,503. or 36.9 percent more 
than the FY 1998-99 cost of $3,309,511. Attachment I is a 
letter from Mr. Duke Briscoe. Deputy Airport Director, 
explaining the reasons for this 36.9 percent cost increase 
and why such an increase in this contract does not require 
a new competitive bid. 

6. Attachment II is the Controller's supplemental 
questionnaire with the Department's responses. 



Recommendation: 



Approve the proposed resolution 



A "7./^* 



^7 'T 7 

Harvev M. Rose 



^ 



Supervisor Yee 
Supervisor Bierman 
Supervisor Becerril 
President Ammiano 
Supervisor Brown 
Supervisor Katz 



Supervisor Leno 
Supervisor Kaufman 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 



Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



18 



jul. ll l y y y y.k^m 



Airport 

Commission 
City and County 
of San Francisco 

WilliB L Brown, Jr. 
Mayor 

Henry E Bernian 
President 

Larry Mazzoie 
Viee President 

Michael S. Strunsky 

Linda S. Craywn 

Caryl to 

JOHN L MARTIN 
Airport Director 



MIA LAWJJblDE OfS 



NO. 1442 P. 2 
Attachment I 




San Francisco International Airport 



GATTWflY TO THE PACIFIC 



July 23, 1999 






Mr. Harvey Rose 

Budget Analyst Office 

San Francisco Board of Supervisors 

1 390 Market Street, Suite 1025 

San Francisco, CA 94102 

Dear Mr. Rose: 

Pursuant to your office's request, Landside Operations has prepared answers to 
the questions regarding the Airport Employee and Long-Term Parking Shuttle 
contract. 

Question 1 . Last year's resolution described the shuttle bus services somewhat 
differently from this year. Can you provide me a description of the service? 

The 24-hour shuttle provides service between the terminals and employee 
parking (Garage DD) and air passenger long-term parking (Lot D). The shuttle 
service provides a key transportation connection to the Airport terminals and 
major employment sites along the McDonnell service road. SFO Shuttle Bus 
Company, a wholly owned subsidiary of San Francisco Parking, operates the 
shuttle service at SFO. In early 2000, 3, 1 35 new parking stalls will come on 
line In the new IT parking complex. In conjunction with this addition in parking 
supply, an Inter-Terminal shuttle route will be Implemented to serve the new 
South Garage and the existing terminals. Additional service hours will be 
required when the new International Terminal opens In May 2000. The 
introduction of the Inter-Terminal route and the IT service will increase peak 
hour vehicle requirements to 1 4 buses. 

Question 2a. Provide an explanation why costs of the shuttle service have 
increased over 30% from last year? 

The operating budget has increased by about 30% over last year due to 
increased service hour requirements resulting from the initiation of expanded 
shuttle service (as described above) between the terminals and between 



SAN FRANCISCO INTERNATIONAL AIRPORT ■ P.O BOX «097 . SAN FRANCISCO CALIFORNIA M128 • TELEPHONE (660) 794-5000 • FAX (GUI IW WW 



19 



Attachment II 
Page 1 of 2 

CHARTER 10.104.15 (PROPOSITION 1) QUESTIONNAIRE 

Department Airport Commission 

Contract Services: Airport 5hunle Bin Services 

Contract Period: ]uty 1, 1999 to June 30, 2000 

1 ) Who performed the activity/service prior to contracting out? 

With construction of the Remote Public Parking Facility in 1975, shuttle bus service was 
initiated by contract. Prior to 1975, the area was utilized as a small lot for SrlA employee 
parking. An employee van service was provided by Airport Parking Management (APM). 

2) How many Gey employees were laid off as a result of contracting out? 
None (See #1) 

3) Explain the disposition of employees If they were not laid off. 
N/A(See#1) 

4) What percentage of Gey employees 7 time is spent on services to be contracted out? 
N/A(See#l) 

5) How long have the services been contracted out? Is this likely to be a one-dme or an ongoing 
request for contracting out? 

Since 1 97S. The current contract commenced on January 1 , 1 998 for a 10-year period with 
up to five additional one-year options. 

6) What was the first fiscal year for a Proposition ) certification: Has it been certified for each 
subsequent year? 

1974-1975. Yes, it has been certified each year since. 

7) How will the services meet the goab of your MBE/WBE Action Plan? 

Although this contract was not awarded to a MBE/WBE firm in 1 996, It must adhere to the 
Gc/s non-discrimination ordinance contained in Chapters 1 2B eZ 1 2C of the City's 
Administrative Code. This contract also contains MBE/WBE goals, which the Conn-actor must 
meet. 

8) Does the proposed contract require that the contractor provide health insurance for its 
employees? Even if not required, are health benefits provided? 

The contract does not require health Insurance. However, the contractor provides health 
insurance for its employees per a labor agreement. 

9) Does the proposed contractor provide beneftts to smplcyees with spouses? If so, are the same 
benefits provided to employees with domestic partners? If not, how does the proposed 
cono^ctor comply with the Domestic Partners ordinance? 

The contractor provides benefits to spouses and domestic partners. 




Department Representative: 

)uSte Bnscoe, Deputy Airport Director - Operations 

Telephone Number: (650)794-5010 

H:DPIno/WPDOCs/05033A9.DPl 



20 



JUL. 22. 1999 3:46PM SFIA LANDSIDE OPS NO. 1442 P. 3 

Attachment II 



Page 2 of 2 



Mr. Harvey Rose 
July 23, 1999 

Page 2 



long-term parking and the new IT. In 1998, the annual service hours analyzed 
in the Prop ) totaled 109,500; in 1999, the service hours required due to 
Master Plan expansion projects total 1 45,666, an increase of 33 percent. 

Question 2b. Why does such an increase in the existing contract not prompt a 
new competitive bid process? 

Fluctuations In the number of bus hours due to new Airport Master Plan 
facilities was discussed and was an integral part of the original Airport Shuttle 
bus RFP issued in 1996. Furthermore, the increases incorporated in this Prop J 
are extensions of existing parking lot/terminal shuttle service, not new routes. 
For these reasons, it is not warranted to reissue an RFP at this time. 

If you have any further questions, please calf Daniel Pino In Landside 
Operations at (650) 794-65 14. 



Sincerely, 

Duke Briscoe 

Deputy Airport Director 

Operations 

cc: Severtn Campbell, Budget Analyst Office 



21 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102^689 



Wednesday, August 04, 1999 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting convened 

The meeting convened at 10:15 a.m. 

REGULAR AGENDA 



DOCUMENTS DEPT 

SEP 1 8 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



991389 [Amending the Health Code to establish patient rates for services, effective July 1, 1999] 

Ordinance amending Health Code by amending Section 128 to fix patient rates for services furnished by 
Department of Public Health, retroactively to July 1, 1999. 

(Amends Section 128) 

7/13/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst Office; Ann Okubo, Department of Public Health; 
Supervisor Yee. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991392 [Authorizing agreements and acceptance of assets related to the dissolution of Western Addition Parking 
Corporation and the lease of the Japan Center Garages at 1660 Geary Boulevard and 1680 Fillmore 
Street] 

Ordinance authorizing the Department of Public Works to accept a gift of $550,000 from the City of San 
Francisco Western Addition Parking Corporation for the renovation of the Peace Plaza at the Japanese Cultural 
and Trade Center; approving the dissolution of the City of San Francisco Western Addition Parking 
Corporation and accepting the remaining assets and liabilities of said corporation; approving the transfer of 
said assets and liabilities to the Japantown Garage Parking Corporation; approving the form of lease of the 
Japantown Garage to the Japantown Garage Parking Corporation; ratifying previous actions taken in 
connection with the foregoing matters; and authorizing the taking of appropriate action in connection 
therewith. (Department of Parking and Traffic) 
7/9/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Supervisor Yee; Ken Bruce, Budget Analyst Office: Jeff Mori, President, 
Japan Center Garage Corporation; Bob Davis, Director, Parking Authority; Supervisor Ammiano; Supervisor 
Bierman. Continued to August 18, 1999. 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 






City and County of San Francisco 



Printed at 12:05 P\1 on i/4/99 



Finance and Labor Committee 



Meeting Minutes 



August 4, 1999 



991423 [Accepting gift donation of construction management services valued at $150,000 for the construction of 
the Airport Library, Archive and Museum that will be located at the new S.F. International Airport] 

Resolution accepting a gift from Parsons Infrastructure and Technology Group Inc. for construction 
management services related to the construction of the Airports Aviation Library, Archive and Museum. 
(Airport Commission) 

7/20/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst Office; Jon Ballesteros, Airport; Supervisor 
Bierman. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991452 [Lease: Property owned by Herbst Foundation at 30 Van Ness Avenue for S.F. Police Department 
Exam Unit, for a term of 5 years at a monthly rental rate of $2,865.50.] 

Resolution authorizing a lease at 30 Van Ness Avenue for the San Francisco Police Department. (Real Estate 
Department) 

7/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst; Tony DeLucchi, Real Estate Department; 
Supervisor Yee; Captain Alex Fagan, Police Department. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 10:48 a.m. 



City and County of San Francisco 



Printed at 12:05 PM on 8/4M9 



3 



CITY AND COUNTY 




Public Library, Gov't Information Ctr.. 5 th Fir. 
Attn: Susan Horn, Dept. 



OF SAN FRANCISCO 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



July 30, 1999 
TO: ^Finance and Labor Committee 

FROM: ^Budget Analyst 
SUBJECT: August 4, 1999 Finance and Labor Committee Meeting 



Item 1 - File 99-1389 

Department: 

Item: 



Description: 



Department of Public Health (DPH) 

Ordinance amending Part II, Chapter V, of the San Francisco 
Municipal Code (Health Code) by amending Section 128 
thereof, to set patient rates for services provided by the 
Department of Public Health, authorizing retroactively the 
effective date of July 1, 1999. 

The San Francisco Municipal Code requires the City to 
approve an ordinance each year fixing patient rates for 
services provided by Department of Public Health (DPH). 
DPH reviews annually its charges for services and makes 
adjustments, when appropriate, to provide for a full recovery 
of costs. The proposed ordinance would set DPH patient 
rates for San Francisco General Hospital, Laguna Honda 
Hospital, Primary Care Clinics, Community Mental Health 
Sendees and Community Substance Abuse Sendees. The 
proposed rates would be retroagt(^yM^ftJT<339EPT. 

AUG 1 1999 

SAN FRANCISCO 
PUBLIC LIBRARY 



Memo to Finance and Labor Committee 

July 28, 1999 Finance and Labor Committee Meeting 



Attachment I, provided by the DPH, compares the FY 1998- 
99 patient rates with the proposed FY 1999-2000 patient 
rates. Following a cost analysis, local rate surveys, and a 
review of reimbursement rates, DPH has recommended rate 
increases for some services and has recommended the 
establishment of some new rates to ensure that the patient 
rates recover DPH costs. As shown in Attachment I, the 
proposed rate changes, as recommended by DPH, range from 
a 2% decrease to a 24% increase. 



Comments: 



1. According to Ms. Okubo, the Department's FY* 1999-2000 
budget includes $28,257,792 in patient revenues from the 
proposed patient rates. Ms. Okubo states that DPH's FY 
1999-2000 budget is based on the proposed patient rates 
contained in this ordinance. 



2. Ms. Okubo states that the proposed patient rates (a) are 
consistent with the rates charged by other Bay Area health 
care institutions, (b) achieve consistency and (c) provide for 
the recovery of DPH costs. 

3. Attachment II is a memorandum, provided by Ms. Okubo, 
explaining why this ordinance was not submitted to the 
Board of Supervisors prior to the approval of the DPH FY 
1999-2000 budget. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



.JIA.-1S-1SS9 12=13 



S= DFH C=Q 



415 534 2S10 P. 22 

Attachment "! 
i^age 1 of 6 



OHPAKIlEiT OF PUBLIC HEALTH 

PRCPC3E5 PATIEH7 RATES 

FY 38-30 



^^^C= 



UWTSCF 

SSWIC3 



CURRStT 

rate 
FY 3j_a 



PRCPCS5J 
RATE 

23-CO 



ccMMUNrry health network 



PSICEKT 
CMAMGc 



San r nnr^^ r^ |( M rn r inf 

Supplies & aru^s 

In-Paxi«nt Car» 
Madicai S urtyi j 
Intensive Cam 
Coronary Can 
CJlast-Pylmcrary 
Sfcepdcwn Ursta 
Pediatrics 
CbsBetnes 
Nursery 

N«w Scrn 

CbservarJcnA/Vea Hacy 

Serra-nrsnsjvw Cars 

lntersrwe Cars 
Laficr/Celjv«Ty-SG 
Laccr/Ceavery Hours of STay 
Psycrjatric inpatient 
Psychiatric Farensic lrrcacent - 7L 
AICS Unrt-5A 
Securty Urat-TO 
Skilled Nursing racSty 
Mental Heaflh Reran. SNF 

Surgical S«rvica« 

Miner Surgery Pr»-Cp Mcidng Rccm 
Mirer Surgery I (Cane i Go) 



Minor Surgery n 

Majcr Surgery Pre-Co Hcldng 
Majcr Surgery I 



Unft 



? j fi*r a i PricaL 



Cay S 


1,061 S 


1.130 


7% 


Cay 


Z5C3 


2500 


4% 


c*y 


2287 


zsaa 


9% 


cay 


2<27 


ZSCO 


7% 


Cay 


1.536 


1.700 


4% 


c>y 


1.061 


1.130 


7% 


Cy 


1JK1 


1.130 


7% 


C=y 


644 


750 


16% 


c*r 


1.061 


1.130 


7% 


Cay 


1/*S5 


1.700 


17% 


Cay 


2103 


ZSCO 


2-t% 


Cay 


1.081 


1.130 


7% 


Hour 


$1 


es 


7% 


Cay 


1.101 


1.130 


3% 


Cay 


1.101 


1.130 


3% 


Cay 


1.C81 


1.130 


7% 


Cay 


1.061 


1.120 


7% 


Cay 


4sa 


450 ' 


-2% 


Cay 


4£8 


450 


-2% 


Rocn 


127 


127 


0% 


IMHcur 


1S5 


135 


cr. 


ICHcuf 


iaa 


333 


c% 


3*4Hcur 


£33 


- 533 


cr. 


F-J1 Hour 


773 


77S 


0% 


Ex Acdl 1/4 -ir. 


1S£ 


1S5 


c% 


1st .Hour 


a*2 


843 


0% 


Ex Acs! 1/2 Hr. 


430 


430 


0% 


Rccm 


137 


137 


0% 


latHcur 


1.254 


1.254 


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Page 5 of 6 



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Attachment II 



Date: 7/22/99 
Sender. Anne Okubo 
To: Gabriel Cabrera 

Priority: Normal 
Subject: patient rates - timing 



Gabe 

The Dept of Public Health typically submits patient rates in July. 
Last year the ordinance was heard by the Finance Committee on Auoust 
12. 

While this has been the practice in the past, it would be best if the 
Dept of Public Health revise its schedule for submitting patient rates 
to be more consistent with the budget process. I will recommend to DPH 
staff that patient rates be developed earlier in the fiscal year so 
that the ordinance is approved by the Board of Supervisors prior to 
the Board's consideration of the next fiscal year budget. 

Anne Okubo 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-1392 



Department: 



Item: 



Department of Public Works (DPW) 
Department of Parking and Traffic (DPT) 

Ordinance authorizing the Department of Public Works 
(DPW) to accept a gift of $550,000 from the City of San 
Francisco Western Addition Parking Corporation for the 
renovation of the Peace Plaza at the Japanese Cultural 
and Trade Center; approving the dissolution of the City of 
San Francisco Western Addition Parking Corporation and 
accepting the remaining assets and liabilities of said 
corporation; approving the transfer of said assets and 
liabilities to the Japantown Garage Parking Corporation; 
approving the form of lease of the Japantown Garage to 
the Japantown Garage Parking Corporation; ratifying 
previous actions taken in connection with the foregoing 
matters; and authorizing the taking of appropriate 
actions in connection therewith. 



Location: 



Description: 



The Japantown Cultural and Trade Center's Peace Plaza 
and Parking Garage Facilities 

The proposed ordinance would authorize the following 
actions: 

• Authorization for DPW to accept a $550,000 gift from 
the City of San Francisco Western Addition Parking 
Corporation (WAPC) 

• Dissolution of the WAPC 

• Funding of the City of San Francisco Japan Center 
Garage Corporation (JCGC) through the transfer of 
WAPC assets and liabilities to JCGC 

• Authorization for the DPT to lease the Japan Center 
Parking Garage facilities to JCGC, and 

• Ratification of previous matters and authorization of 
future related matters 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



10 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



The Japan Center Parking Garage facilities (hereinafter, 
the "Garage") is comprised of two parking structures that 
accommodate a total of 850 vehicles. According to Mr. 
David Sanchez, Deputy City Attorney, the Garage is 
owned by the City and leased by WAPC through a 
leasehold interest. Mr. Sanchez also reports that under 
the provisions in the proposed ordinance, the Garage will 
continue to be owned by the City though now leased by 
JCGC instead of WAPC. 

Attachments 1 and 2, provided by DPT, explain the 
background facts associated with the Garage. According 
to DPT, the proposed ordinance is in the best interests of 
the City because it favorably positions the City and DPT 
to meet future anticipated debt service obligations related 
to a new parking garage development, called the Jazz 
Garage, which will accommodate 466 vehicles. However, 
to accomplish this end, according to DPT, WAPC, the 
current nonprofit corporation, must be dissolved to 
release the Gross Receipt Tax 1 obligation and restructure 
the management lease to direct 85% of the Garage's 
income to the City. 

According to DPT, under the existing WAPC lease, DPT 
must pay the Garage's Gross Receipts Tax to the Tax 
Collector since the Garage was previously financed 
through a bond issue, even though those bonds have since 
been fully paid and retired. Moreover, the nonprofit 
corporation. WAPC, currently retains 100% of the income 
and gives surplus funds to the City, as and when their 
Board deems it appropriate. Traditionally, nonprofit 
corporations, like WAPC, which were used to finance 
parking garages, gives surplus funds derived from the 
garage's income to the City if and when those monies 
were no longer needed for debt service or for capital 
improvements or alterations, according to Mr. Ron Szeto. 
Deputy Director, of the DPT. 



1 The Gross Receipts Tax must be paid by nonprofit garages that issue bonds. Currently the 
Gross Receipts Tax for nonprofit garages is set at 25 percent of gross receipts. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



Attachment 3, provided by DPT, outlines the current 
budget for WAPC and the proposed budget for JCGC as 
well as the fiscal impact to City departments affected by 
the proposed ordinance. As reported by DPT, the benefits 
to their department are the release of the departmental 
obligation to pay the Gross Receipts Tax on behalf of 
WAPC. Additionally, the City and DPT will have access to 
85% of the income under the proposed lease agreement 
with JCGC, the new nonprofit corporation. Moreover, 
since JCGC will not be issuing bonds, that new entity will 
not have any Gross Receipts Tax liability, according to 
DPT. Section 1004.16 of the Administrative Code defines 
when such nonprofit corporations are subject to Gross 
Receipts Tax. 2 

According to Mr. Szeto, of the DPT, the ultimate goal of 
this organizational and financial restructuring is to 
position the City and DPT to adequately cover future, 
projected debt service obligations for the new Jazz 
Garage, which are estimated to be between $1.1 and $1.2 
million annually. Mr. Szeto reports that such costs would 
be funded by the $437,717 that would become available if 
the Gross Receipts Tax obligation no longer has to be paid 
by DPT, new income derived from the JCGC lease of 
$627,938 and projected operating income from the new 
Jazz Garage of $68,938, for a total of $1,134,593. Mr. 
Szeto also reports that the cost and financing plan details 
for the new Jazz Garage development are yet to be 
finalized and submitted for Board of Supervisors 
approval. 

The following Gift and Lease actions of the proposed 
ordinance are outlined below. 






2 According to Mr. Szeto, JCGC will be exempt from the Gross Receipts Tax just as the Ellis- 
O'Farrell Parking Corporation, a nonprofit corporation, is currently exempt. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

GIFT 



Gift Amount: 
Description: 



$550,000 

Prior to the dissolution of the Western Addition Parking 
Corporation (WAPC), WAPC will gift $550,000 in cash to 
DPW for the renovation of the Peace Plaza at the 
Japanese Cultural and Trade Center. According to Mr. 
Szeto, the gift proceeds represent a portion of WAPC's 
equity and will be specifically appropriated by DPW for 
waterproofing. The Peace Plaza is a hardscape plaza 3 
located on top of the Garage and the waterproofing will 
directly benefit the Garage. The proposed resolution 
would authorize the DPW to accept a gift of $550,000. 



LEASE 



Purpose of Lease: 



Lessor: 



Lessee: 



No. of Sq. Ft.: 

Annual Rent Payable 
By JGPC to the City: 



Management of Japan Center Parking Garage Facilities 

City and County of San Francisco 

City of San Francisco Japan Center Garage Corporation, 
a nonprofit corporation 

The Garage contains 289.567 square feet and 
accommodates 850 vehicles. 

$1.00 over the term of the lease; plus, 85 percent of net 
revenues (meaning gross revenues minus parking taxes 
and operating expenses). Attachment 3, provided by DPT. 
further explains the proceeds projected for the City as 
well as how both the Tax Collector and DPT will be 
affected by the proposed ordinance. 

According to DPT, the projected annual proceeds under 
the JCGC lease is estimated net revenue (income 
participation) of $627,938 (for the current year) by the 
City. See Attachment 3 for further details. 



3 Hardscape plaza is the term used to describe a park area with hard surface landscaping, as 
opposed to parks, which have tree and garden landscaping. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

13 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



Utilities and 
Janitorial Services: 



Term of Lease: 



According to Mr. Szeto, as with other nonprofit 
corporations involved in City garage management, all 
costs for utilities and janitorial services would be 
approved annually by the Controller and DPT and are the 
responsibility of the Lessee. 

The lease term is 40 years, though the City can terminate 
the lease with cause at any time. After five years, the City 
can terminate the lease with or without cause. 



Right of Renewal: 
Description: 



None. 

The proposed resolution would authorize the Department 
of Parking and Traffic to enter into a lease, without using 
a competitive bid process, with the City of San Francisco 
Japan Center Garage Corporation (JCGC), a nonprofit 
corporation, to manage the Japan Center Parking Garage 
facilities located at 1660 Geary Boulevard and 1680 
Fillmore Street. According to Section 17.11 of the 
Administrative Code, the Parking and Traffic 
Commission can lease a parking facility, without a 
competitive process, to a nonprofit corporation for the 
purpose of facilitating the financing of a parking facility, 
as authorized and approved by the Board of Supervisors. 

Also consistent with Section 17.11, JCGC would contract 
with a parking operator following a Bid/RFP process in 
accordance with the lease agreement. JCGC must employ 
a professional parking operator with a staff experienced 
in the management and operation of public parking 
facilities and such operator shall be subject to approval by 
both the Parking and Traffic Commission and the Board 
of Supervisors in accordance to Section 17.11 of the 
Administrative Code, which was amended in April 26, 
1999 to allow for a Bid/RFP process instead of a 
competitive bid process (File No. 98-1935), according to 
Mr. Szeto. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



DPT reports in Attachment 2 that it believes that it is in 
the City's best interest to have a lease agreement, without 
using a competitive bid process, for the management of 
the Garage to facilitate continued involvement by 
neighborhood residents and local merchants. According to 
Mr. Szeto, having neighborhood involvement on the JCGC 
Board of Directors is helpful in maintaining a successful 
community garage for the Japantown neighborhood. See 
Attachment 2 for further explanation from DPT. 

Under the terms of the lease, the Controller and the 
Parking and Traffic Commission have review and 
approval authority for the annual budget of the Garage. 



Comments: 1. According to Mr. Szeto, the $550,000 gift from WAPC 

will be used to fund necessary waterproofing and will be 
but a part of the larger renovation currently already 
underway at the Peace Plaza. According to Ms. Tina 
Olson, Financial Manager, of DPW, the budgeted cost of 
the renovation is $2,055,648 million of which $550,000 is 
coming from the WAPC gift. $600,000 from the San 
Francisco Redevelopment Agency, $350,000 from the 
General Fund through the Department of Recreation & 
Parks' FY 1999-2000 budget, $405,648 from Open Space 
monies (of which $200,000 is from previous years' budgets 
and $205,648 is from the FY 1999-2000 budget) and 
$150,000 from private, community sources. 

2. Attachment 2, provided by DPT, explains (a) the 
purpose of the WAPC dissolution; (b) the benefits to the 
City for dissolving WAPC and establishing JCGC: and, (c) 
the reasons why the City should award this lease to JCGC 
without the use of competitive bidding procedures. The 
Attachment states that the primary benefit of the 
ordinance is to financially restructure the obligations and 
rights of the City. DPT and the nonprofit corporation 
leasing the Garage. However, the principal benefit in 
doing so is the City's debt service capacity for a future, 
proposed garage facility, called the Jazz Garage, which is 
still in the design and development stages. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



3. Attachment 3, provided by DPT, illustrates that DPT 
will be a beneficiary of the proposed ordinance through 
the release of the department's annual Gross Receipts 
Tax obligation of $437,717 payable to the Tax Collector on 
behalf of WAPC and the creation of rental revenue or 
income rights of $627,938 (for the current year) under the 
lease agreement. The fiscal impact on the City's General 
Fund, however, is negative, as the General Fund will 
incur a reduction in Gross Receipts Tax of at least 
$437,717 annually. See Attachment 3 for further details. 

4. Mr. Szeto reports that the expected decrease of 
$437,717 in Gross Receipts Taxes may be mitigated by a 
future increase in Parking Taxes if the Jazz Garage is 
successfully developed. However, the Jazz Garage 
development is still contingent on financing and the 
development negotiations, which are yet to be completed 
and approved by the Board of Supervisors. See 
Attachments 2 and 3 for further details. 

5. According to Mr. Szeto, the management lease will be 
signed with JCGC, the successor, non-profit public benefit 
corporation, without the use of a competitive bid process 
because it is consistent with Section 17.11 of the 
Administrative Code and because DPT has determined 
that it is in the best interest of the City to do so since 
having a lease with JCGC will further demonstrate DPT's 
commitment to community involvement in the 
management of the Garage and the selection of a 
compatible parking operator. Mr. Szeto also reports that 
the parking garage operator will be selected through a 
Bid/RFP process as permitted in Section 17.11 of the 
Administrative Code, and the operator agreement will be 
submitted for Board of Supervisors approval, by 
resolution. 

6. Mr. Keith Grand, Risk Manager for the City, has 
reviewed the level of insurance coverage and deductibles 
in the proposed lease and has recommended increasing 
coverage deductibles for both property and boiler and 
machinery insurance, which will have expected savings of 
10% of the premium costs for those policies. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



7. According to Mr. Joe Matranga, Financial Analyst 
with the Controller's Office, the rent or net revenue 
provisions associated with the proposed lease are 
comparable with the City's other nonprofit garage leases. 
Mr. Matranga also reports that the Controller and the 
DPT has, and will continue to have, complete fiscal 
oversight and approval authority for all financial matters 
pertaining to Garage operations. 

8. Mr. Szeto concurs with the Budget Analyst that the 
proposed ordinance should be amended to reflect that 
both: (a) the assets and liabilities will be transferred to; 
and, (b) the lease will be signed with the Japan Center 
Garage Corporation, not the Japantown Garage Parking 
Corporation. 

9. According to Ms. Lori Giorgi, Deputy City Attorney, 
receipts derived from the Garage will go to the Off-Street 
Parking Fund and after all accountings are paid under 
the Off-Street Parking Fund, any excess revenues go to 
the Parking Transit Fund. 

10. The proposed ordinance would result in annual 
financial benefits to the Off-Street Parking Fund of 
$627,938 from Garage income and $437,717 from the 
release of DPTs obligation to pay the Gross Receipts Tax 
for WAPC. The proposed ordinance would also result in 
reduced revenue to the General Fund of $437,717 
annuallv. 



Recommendations: 1. Amend the proposed ordinance to replace all 

references to the Japantown Garage Parking Corporation 
with the Japan Center Garage Corporation. 

2. Approval of the proposed resolution is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



ATTACHMENT 1 



The Japan Center project, bounded by Post, Laguna, Geary and Fillmore (intersected by 
Webster), started as a redevelopment project in the early 1960's. The Redevelopment 
Agency agreed to sell the site to a private developer, National Braemar, Inc., for 
development as a Japanese cultural and trade center. In 1965, negotiations were 
concluded between the Redevelopment Agency, National Braemar, and the City for the 
development of the Center. National Braemar agreed to construct a privately owned 
commercial complex devoted to Japanese cultural and trade uses above the garage. The 
garage was to be separately financed and constructed by a nonprofit corporation. The 
garage, land and improvements would be given to the City subject to a 50-year lease to 
secure the corporation's repayment of the costs of acquisition and construction of the 
garage. 

On April 1, 1965, the City entered into a 50-year lease with the Western Addition 
Parking Corporation ("Western") to aid and assist the City for the acquisition of the 
demise premises and the construction of the Japan Center Garages (the "Garage") on said 
premises. Under the lease, Western agreed to finance the costs of acquisition of the 
demised premises and the construction of the Garage with the costs to be repaid out of 
revenues derived from the operations of the Garage. Under this arrangement, Western 
also retains 100% of net income for future Garage capital improvements, such as lighting 
retrofit and replacement of parking equipment. 

Western financed the cost of the Garage construction from the sales of prior lien bonds 
(53,000,000) and subordinate bonds ($673,000). From the 1960's through the 1980's, the 
Garage revenues were insufficient to cover the operating costs of the Garage and the debt 
service due on the bonds. As part of the agreement to the bondholders, Western received 
advances from the City ($382,552) and National Braemar ($647,148) to meet its financial 
obligations. During this period, the City imposed a new gross receipt tax. Under the 
lease, the City was contractually obligated to pay any new tax imposed on Western and 
under this obligation, the annual gross receipt tax was passed to the City for payment. 



Provided by Mr. Ron Szeto, DPT 27 July 1999 File No. 99-1392 

18 



ATTACHMENT 2 
(Page 1 of 2) 



FUTURE GARAGE DEVELOPMENT & THE JAPAN CENTER GARAGE 

In 1995, the Redevelopment Agency approached the Parking Authority and the Western 
Addition Parking Corporation to discuss the proposed entertainment complex that 
includes a 466-space garage, a jazz super club, and a multi-screen theatre complex 
located on Fillmore and Eddy Streets. This proposed revitalization project is as important 
to this neighborhood today as the Japanese cultural and trade center development was to 
Japantown in the 1960's. Benefits generated from this proposed project would include 
increase visitors to neighborhood and increase commerce for local merchants. 

At the beginning of this proposed revitalization project, the Department of Parking and 
Traffic supported the efforts of Western Addition Parking Corporation ("Western") to 
finance the acquisition of the proposed garage component. Subsequently, the Department 
and the City concluded that the best interest of the City would be served if the Parking 
Authority directly undertook to finance the garage component of the project. 

Since the projected operating income for the proposed garage was minimal and 
insufficient to cover the annual debt service, approximately Sl.l to SI. 2 million, the 
Parking Authority began looking at alternative sources of revenues to fill the gap. The 
Parking Authority identified the Japan Center Garage (the "Garage") revenues as the 
source that did not impact the General Fund. Under the lease with the Western, the 
corporation retained 100% of the income or approximately S700.000 annually from the 
operations of the Garage. The corporation uses these retained funds for future Garage 
capital improvement projects, such as, lighting retrofit and replacement of parking 
equipment. Moreover, under the lease, our department was contractually obligated to pay 
for the gross receipts tax, approximately S450.000 annually, for the Garage. 

At this point, we decided that the best interest of the City was to terminate the lease with 
Western. The termination would allow the Parking Authority to capture the Garage's 
income and to relieve our Department of the gross receipt tax obligations. Gross receipt 
taxes are assessed on non-profit parking corporations that issued bonds to construct a 
parking garage. The new non-profit corporation would not be subjected to this tax. 
During this process, Japantown community leaders expressed their concerns with 
terminating the lease. They wanted to maintain their commitment to the community, 
without any personal financial benefits, by serving on the Board of Directors that 
oversees the Garage. Understanding the importance of the Garage to the local merchants, 
residents and visitors, they wanted direct involvement with the operations of the Garage 
and the selection of the professional parking operator. Based on this assessment, DPT 
believes that a sole-source contract with JCGC is in the best interest of the Citv. 



Provided by Mr. Ron Szeto, DPT 27 July 1999 File No. 99-1392 

19 



ATTACHMENT 2 
(Page 2 of 2) 



GIFT FUNDS 

Also, the community wanted to improve the Peace Plaza, which has been delayed for 
many years due to insufficient funding. The Western offered a $550,000 gift to the 
Department of Public Works to increase the funds for the Peace Plaza Renovation 
Project. This gift will have direct and indirect benefits to the Garage and the community. 
For years, the Garage has experienced water leakage problems. This gift would allow 
DPW to incorporate a superior water-proof material that would keep water from 
penetrating the concrete slabs into the Garage. Renovation of the Japantown Peace Plaza 
would increase the number of visitors to the community and thus generate more Garage 
revenues. The remaining capital funds balance of approximately $200,000, at this time, 
would be sufficient to meet any capital projects in the near future. 



FISCAL IMPACT 

The financial benefits of dissolving Western are $437,717 of tax savings and $627,938 
(85% of $738,750) of new income for our Department. The 15% of net income that the 
new corporation would retain would be use for improvements to the Garage. If approved, 
the Parking Authority will use the tax savings of $437,717, new income to the 
Department of $627,938, and any operating income from the proposed new garage 
projected to be $68,938 (for a total of $1,134,593) to offset any debt service (projected to 
be $ 1 . 1 to $ 1 .2 million) for the proposed Jazz Garage. 



SUMMARY & STATUS OF NEGOTIATIONS FOR JAZZ GARAGE 

The primary benefit of the ordinance is to financially restructure the obligations and 
rights of the City, DPT and the nonprofit corporation leasing the Garage. And, due to the 
above financial reasons and the sensitivity towards the community's concerns, the 
Parking Authority Commission approved a Resolution, which urges the Board of 
Supervisors to accept the gift, enter into a lease with the Japan Center Garage 
Corporation (the "Corporation"), and the transfer all assets and liabilities from the 
Western Addition Parking Corporation to the Japan Center Garage Corporation. We are 
currently negotiating a purchase price with the developer for the garage component of the 
proposed entertainment project. We will submit our proposed bond document to the 
Board of Supervisors for approval of bond issuance and the appropriation of funds when 
we agree on a purchase price with the developer. 



Provided by Mr. Ron Szeto, DPT 27 July 1999 File No. 99-1392 

20 



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21 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-1423 



Department: 
Item: 



Description: 



Airport 

Resolution accepting a gift, valued at $150,000 by the 
Airport, from Parsons Infrastructure and Technology 
Group, Inc. to provide construction management services 
for the construction of the Airport's Aviation Library, 
Archive and Museum in the new International Terminal 
at the San Francisco International Airport. 

In October of 1991 the Airport Commission authorized the 
establishment of an Aviation Library, Archive and 
Museum ("the Museum") in the new International 
Terminal at the San Francisco International Airport. The 
Museum consists of 11,000 square feet of space located in 
the southeast corner of the International Terminal with 
an entrance on the third level of the Terminal and a 
mezzanine that extends to the fourth level. The Museum 
is designed to reflect the Mediterranean ambience of the 
1937 Administration Building Passenger Waiting Area 
that no longer exists and will house a collection of 
aviation and Airport memorabilia, documents, and 
airplane models, focusing on commercial aviation with an 
emphasis on the Pacific Region and San Francisco 
International Airport. The Museum is scheduled to open 
in Summer of 2000, when the new International Terminal 
opens. 

Parsons Infrastructure and Technology Group, Inc. 
currently serves as the Program Manager for the Airport's 
$2.4 billion Master Plan, which includes the new 
International Terminal, an Airport Rail Transit system, 
the BART Airport extension, a new rental car facility, and 
three new parking garages for passenger and employee 
use. As Program Manager, Parsons Infrastructure and 
Technology Group, under the supervision of the Deputy 
Airport Director, oversees and directs the various 
construction managers who are managing Airport 
construction projects that are part of the Airport Master 
Plan. 

Since its inception in 1944, Parsons has been involved in 
construction, project, and program management, and the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



22 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

planning and design of airport capital programs valued at 
$120 billion in more than 300 airports in 34 countries. 
Parsons wishes to donate its construction management 
services for the Aviation Library, Archive and Museum 
project which is part of the new International Terminal. 

Approval of this resolution would authorize the Airport to 
accept a gift from Parsons Infrastructure and Technology 
Group, Inc. (Parsons), to provide pro bono construction 
management services of $150,000, as valued by the 
Airport, to oversee and direct the construction of the 
Airport's Aviation Library, Archive and Museum. 

Comments: 1. According to Mr. Tom Kardos, Deputy Airport Director, 

the design for the Museum, which is being provided by 
the firm of Fong and Chan Architects, is expected to be 
completed within the next two weeks. The contract for 
construction of the Museum is expected to go out for 
competitive bid in 4 to 6 weeks. Parsons will not be a 
bidder on the Museum construction contract. 
Construction of the Museum is scheduled to begin in the 
fourth quarter of 1999. 

2. Mr. Kardos states that the estimated cost of the 
construction of the Aviation Library, Archive and 
Museum is $3.5 million, and that funds have been 
budgeted in the FY 1999-00 Airport Capital Improvement 
Program budget. 

3. Mr. Kardos advises that construction management 
costs for comparable projects, based on historic industry 
figures, range from four percent to six percent of the 
construction value. Therefore, the estimated construction 
management costs for the Museum could range between 
$140,000 to $210,000. The basis of the value of this 
$150,000 gift of services, as estimated by the Airport, is 
shown in the Attachment provided by the Airport. 
According to Mr. Kardos. the $150,000 value of the 
proposed gift is an estimate of the value of the 
construction management seivices to be provided for the 
museum project. 

4. Parsons' construction management services consist of 
assigning dedicated personnel from Parsons to oversee 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



and direct the construction of the Museum. According to 
Ms. Mara Rosales of the City Attorney's Office, the 
Airport would enter into a construction management 
services contract for the purpose of ensuring (a) that 
Parsons meets the same standard of professional services 
required for all construction management services, (b) 
that Parsons is committed to completing the project, and 
(c) to provide a clearly defined scope of work to be 
performed by Parsons to enable the Airport to coordinate 
the work performed by others. Under that contract, the 
Airport will pay Parsons $1.00 as consideration for 
entering into the contract. 

5. Mr. Kardos states that Parsons is donating the 
construction management sendees for the Museum 
project to reaffirm Parsons' commitment to the aviation 
industry and to thank the City for the opportunity to 
serve as Program Manager for the Airport's Master Plan. 

According to Mr. Kardos, Parsons decided to donate its 
services of an estimated $150,000 subsequent to the 
Airport's award of a contract for Parsons to serve as a 
Program Manager for the Airport Master Plan. Mr. 
Kardos advises that the contract award amount to 
Parsons to serve as Program Manager for the Airport 
Master Plan is approximately $4,580,000. 



Recommendation: Approve the proposed resolution 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



lol. 29. 1999 4:38PM SFIA BDC 876 2531 

TO: Severin Campcll 

Budget Analyst's Office 
Fax: (415)252-0461 

FROM: Tom Kardos 

Deputy Airport Director, S.F.I.A. 
Phone: (650)737-7829 

SUBJECT: Gift of Construction Management Services 

DATE: July 27, 1999 — Total: 2 pages (Page 2 revised 7/29/99) 



No. 1117 P. 1/2 
Attachment 

Page 1 of 2 



Following up on your request, here is a summary of the telephone conversation you had with 
Jason Yuen this afternoon, in which Jason explained the nature of construction management 
(CM) services and the basis for estimating the value of the gift from Parsons, as well as the 
significance of the 5150,000 amount. 

There are basically four parties to a typical construction project: 1 ) the Owner — the City of S.F. 
in this case; 2) the designer — the architect or engineer, 3) the contractor — the company who 
does the physical work; and 4) the construction manager — who monitors and coordinates the 
contractor's work. 

The designer's services can be procured with a lump-sum fee contract. The contractor's pnee is 
usually a lump-sum bid. But the construction manager is always (I know of no exception) 
retained on an hourly basis. Every CM contract at the Airport, for example, is awarded on a time 
and material basis with no cap. Funds for these contracts are added or deleted as the Airport 
Commission sees fit. 

The reason for this is simple: CM sen-ices are provided on an as -needed basis. How much work 
is required depends greatly on the directions of the owner, the performance of the contractor, the 
site conditions, and even acts of God. There is no way the owner nor the construction manager 
can predict what CM services will cost to complete a project, other than a general idea what the 
historic costs are for similar projects. 



25 



Jul. 29. 1999 4:38PM SFIA BDC 876 2531 No. 1117 P. 2/2 

Attachment 

Page 2 of 2 
The $150,000 value for Parson's gift, therefore, is a "guesstimate" based on our professional 

judgment and relying on statistics from other similar projects. (You have the Airport 

Commission agenda memo explaining how we decided on that number.) The $150,000 number 

is of no significance other than to provide an indication of the general size of the gift — i.e., it is 

not a small gift of $50, and it is not a very large gift of $l-million. 

Parsons will perform construction management services to complete the Airport's Aviation 
Library, Archive, and Museum. For $1, they will provide construction schedulers, cost 
estimators, construction inspectors, and other professionals to monitor, coordinate, and expedite 
the construction work, and to report progress to the Airport, as well as assisting the Airport in 
resolving construction problems for the project — all at the direction of the Airport. 

If you have any questions, please call me at (650) 737-7829, or Jason Yuen at (650) 737-7700. 



cc: Jason Yuen 



26 



Memo to Finance and Labor Committee 

August 4, 1999, Finance and Labor Committee Meeting 

Item 4 - File 99-1452 



Department: 



Item: 



Location: 



Purpose of Lease: 



Lessor: 

Lessee: 

No. of Sq. Ft. and 
Rent Per Month: 



Annual Cost: 



Police Department (SFPD) 
Department of Real Estate (DRE) 

Resolution authorizing a new lease of real property at 30 
Van Ness Avenue for the San Francisco Police 
Department. 

30 Van Ness Avenue, 2 nd Floor 

30 Van Ness Avenue is independent from other SFPD 
facilities, which is an important consideration for the 
SFPD because according to the SFPD, the department 
needs a secure off-site facility for promotional exam 
development in light of the recent court case arising out of 
the leaking of a promotional exam. 1 

Presently the San Francisco Police Department's (SFPD) 
Exam Unit rents space at local hotels and meeting 
facilities during the development of department exams. 
As explained in Attachment 1, Captain Alex Fagan, 
Commanding Officer, of the SFPD's Fiscal Division, the 
proposed lease would allow the SFPD to fully secure the 
development of all anticipated SFPD exams at the 30 Van 
Ness Avenue location while saving money. 

Herbst Foundation, a non-profit organization 

The City and County of San Francisco 



The proposed space at 30 Van Ness Avenue consists of 
approximately 1,563 square feet of office and examination 
space at approximately $1.83 per square foot per month 
for a total of $2,865.50 per month for five years. 

$34,386 per year, for five years. 



' According to the SFPD, the presiding judge in the court case severely chastised the SFPD for failing to 
conduct the test development in a secure and independent facility. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance and Labor Committee 

August 4, 1999, Finance and Labor Committee Meeting 



Utilities and Janitor 
Provided by Lessor: 



Term of Lease: 



According to Mr. Charlie Dunn, Principal Real Property 
Officer, of the DRE, the landlord pays utility, janitorial 
and security service expenses. Utility and service cost 
increases, from the 1999 base year, are however passed on 
to the City. 

The proposed lease would commence upon approval of the 
Board of Supervisors and would expire five years 
thereafter. According to Mr. Dunn, of the DRE, 30 Van 
Ness Avenue is currently over 50 percent occupied by 
other City departments. The proposed lease does not have 
expansion rights, nor is expansion expected to be 
necessary for the SFPD Exam Unit, according to Mr. 
Dunn. 



Right of Renewal: 



The City would have the option to extend the lease for up 
to two three-year periods on the same terms and 
conditions at a rental rate increased bv the CPI. 



Source of Funds: 



Description: 



100% General Fund which was included in the SFPD's FY 
1999-2000 budget, according to the SFPD. Such funds 
were budgeted for short-term rentals used during 
examination development and will now be used for the 
lease of real property at 30 Van Ness Avenue. 

Captain Fagan, of the SFPD, advises that the proposed 
lease would provide space for the SFPD Exam L T nit to 
temporarily relocate two existing employees, who 
facilitate the test development process, during test 
development sessions throughout the year. During the 
development of a test up to 19 people would be using the 
facility. 

Captain Fagan states that the proposed space will be able 
to accommodate all existing and projected exam 
development needs for the next five years, which are 
currently preformed at the Hall of Justice and at rented 
facilities throughout the City. Attachment 2. provided by 
Captain Fagan of the SFPD. details the projected fiscal 
impact that the new lease will have on the City. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

August 4, 1999, Finance and Labor Committee Meeting 



Comments: 



1. As shown in the Attachment 2, provided by the SFPD, 
the proposed lease will result in $33,559 of expected 
savings in FY 1999-2000 due to the lower lease cost for 
the proposed leased site at 30 Van Ness as compared to 
current rental rates at meeting facilities throughout the 
City (e.g. at Holiday Inn). 

2. According to Captain Fagan, the SFPD Exam Unit 
employees, which are currently located at the Hall of 
Justice, will need to continue to work out of the Hall of 
Justice except during the development of specific exams 
which require the security of an independent site. 
Therefore, no reduction is office space is expected at the 
Hall of Justice for the Exam Unit as a result of this new 
lease. 



3. According to Mr. Dunn, of the DRE, the proposed rent 
represents fair market value. 

4. Mr. Dunn advises that the Lessor will pay for 
leasehold improvements at an estimated cost of $5,000 for 
paint and carpet cleaning and that the improvements are 
expected to be completed within approximately 30 days 
after approval of the proposed resolution. Mr. Dunn also 
reports that the building meets American with 
Disabilities Act requirements. 



Recommendation: 



Approve the proposed resolution. 



^L. 



Harvey M. Rose 



Supervisor Yee 
President Ammiano 
Supervisor Bierman 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 



Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 



Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 




ATTACHMENT 1 
POLICE DEPARTMENT 

CITY AND COUNTY OF SAN FRANCISCO 

THOMAS 1. CAHILL HALL Of JUSTICE 

a50 BRYANT STREET 
SAN FRANCISCO, CAUFORNIA 94103 



FRED H. LAU 

CHIEF OF POUCE 



July 29, 1999 



Todd Rydstrom 

Board of Supervisors Budget Analyst 
1390 Market Street, Suite 1025 
San Francisco, CA 94102 

Dear Todd, 

In order to ensure the integrity of the promotional examination process it is imperative 
that the development of the test is conducted in a secure environment. In the past the 
Department has rented conference rooms as well as use space at the Hall of Justice. The 
Department believes that leasing space at 30 Van Ness will provide the necessary 
security for the test development while saving tax dollars. 

If you have any question please contact Andres Acevedo at 553-1683 



Sincerely yours, 



0^c%^— — 



AlexFagan 

Captain, Fiscal Division 



soo® 



30 



MOISIAId TVDSIJ 



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City and County of £an Francisco 

MeetingjYIinutes 
, Finance and Labor Committee 

Members: Supervisors Leland I'ee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-1689 



Wednesday, August 11, 1999 



10:00 AM 

Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:15 a.m. 

REGULAR AGENDA 



DOCUMENTS DEPT 

AUG 1 7 !C:.9 

SAN FRANCISCO 
PUBLIC LIBRARY 



991463 [1996-2000 Memorandum of Understanding. Transit Workers' Union Local 250-A| 
Mayor 

Ordinance implementing Amendment No. 3 to the 1996-2000 Memorandum of Understanding between the 
City and County of San Francisco and Transit Workers' Union Local 250- A for Classification 9163 and related 
trainee classifications. 

(Fiscal impact.) 

7/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Geoffrey Rothman. Employee Relations 
Division. Human Resources Department: Michael Burns. General Manager. Department of Public 
Transportation; Supervisor Ammiano; Supervisor Yee; Ray Antonio. Local 250-A; Larry Martin, Vice 
President Transport Workers Union. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 






991455 [Reserved Funds, Recreation and Park Department! 

Hearing to consider release of reserved Funds, Recreation and Park Department ( 1 992 Golden Gate Park 
Infrastructure Bond fund proceeds. Ordinance No. 368-97), in the amount of 58,801,092, to fund award of 
contract for the construction of the West End Utilities, Golden Gate Park Infrastructure Improvement Project. 
(Recreation and Parks Department) 

7/23/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose. Budget Analyst: Patrick Rivera. Department of Public Works; 
Supervisor Yee; Ed Harrington. Controller. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Primed at 5. M PM on S/IIV9 



Finance and Labor Committee 



Meeting Minutei 



August II, I <)<)<) 



991482 |l'l. g Department Enforcement Program| 

Supervisor Yee 

Hearing to consider the Planning Department's enforcement program, including how the enforcement program 
will be enhanced to vigorously enforce the Planning (ode and terms of conditional use authorizations and how 
the positions that were approved in the FY 1999-2000 budget n ill be used to expand enforcement. 

7/26.")'). Kl ( I :l\ I DAM) ASSIGNI 1) to I nuncc and Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst Supervisor Yee Man Gallagher, City 
Planning Department. Harry Stern, l-'nends of Noe Valley, Eleanore Cerhardt, Friendi of Not Valley, Bernie 
Chodan; Arron Peskin, Telegraph Hill, Trace) Hughes, Roberta CaraveUi, Christina Stout Marina District, 

Lois Scott, Local 21 , Supervisor Bierman. Supervisor Ammiano 
CONTINUED TO CALL OF THE ( II AIK l>> the following vote: 
Ayes: 3 - Yee. Bierman. Ammiano 



991488 (Permitting non-city workers (Polaries Research & Development. Inc.) to continue performing 

information booth services at S. F. International Airport because non-city workers can perform work at 
a lesser cost than City employees. | 

Resolution approving the Controller's certification that Airport information booth services at San Francisco 
International Airport can be practically performed by a private contractor at a lower cost than if work were 
performed by City employees at presently budgeted levels (Airport Commission) 
7/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst, Jon Ballcslros. Airport 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee. Bierman. Ammiano 



991397 [Ballot Argument, Bond Measure, Laguna Honda Hospital| 
Supervisor Ammiano 

Motion authorizing proponent's ballot argument in favor of Proposition A. a bond measure regarding Laguna 
Honda Hospital. 

8/2/99. RECEIVED AND ASSIGNED lo Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Tangerine Bngham. Department of Public 
Health; Lloyd Schloegel. Emeric Kalman, Supervisor Bierman 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee. Bierman 

Absent: 1 - Ammiano 



991427 [Labor Dispute, KPFA| 

Supervisors Yee, Bierman 

Resolution supporting the employees and listeners of KPFA in its fight for fair and impartial broadcasting. 
7/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee. Bierman 

Absent: 1 - Ammiano 



ADJOURNMENT 

The meeting adjourned at 1 2 00 p.m. 



City and County of San Francisco 



Printed at 5:31 PM on S12V9 



CITY AND COUNTY 



3 




^\ Public Library, Gov't Information Ctr.. 5 th Fir. 

m ~- „ ,, -^ ^~. n ~Att**s Susan Horn, Dept. 41 
Is OF SAN FRANCISCO * 



BOARD OF SUPERVISORS 



BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 

FAX (415) 252-0461 DOCUMENTS DEPT. 

AUG 1 2 1999 

August 6, 1999SAN FRANCISCO 
PUBLIC LIBRARY 






TO: -Finance and Labor Committee 

FROM: Budget Analyst 

SUBJECT: August 11, 1999 Finance and Labor Committee Meeting 

Item 1 - File 99-1463 

Departments: Department of Human Resources 

Department of Public Transportation 

Item: Ordinance implementing Amendment No. 3 to the 1996- 

2000 Memorandum of Understanding between the City 
and County of San Francisco and Transit Workers' Union 
Local 250-A for Classification 9163 and related Trainee 
classifications. 

Description: The proposed ordinance would implement the third 

amendment to the Transit Workers' Union Local 250-A 
Memorandum of Understanding (MOU), in accordance 
with the contract re-opener provisions in the existing 
MOU. The current MOU extends from July 1, 1996 
through June 30, 2000 and covers a total of 
approximately 2,000 Classification 9163, Muni Transit 
Operators, including Trainee Operators in the 
Department of Public Transportation. Attachment 1, 
provided by the Department of Human Resources, 
indicates the length of employment and the relative pay 
rates for the Trainee Operators versus the regular 9163 
Transit Operators. The proposed amendment would cover 
the period from July 1, 1999 through June 30, 2000, when 
the overall MOU expires. 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 

The proposed amendment would result in the following 
changes to the MOU: 

Basic Wage Rates - The basic maximum wage rates 
would be increased by 5.5 percent from the current $20.15 
to $21.26 per hour for 9163 Transit Operators and from 
the current $12.70 to $13.40 for the Trainee Operators, to 
be effective July 1, 1999. 

Hours of Work for Part-time Operators - Part-time 
operators would not be scheduled to work more than: (a) 
25 hours per week; (b) five hours per weekday; (c) eight 
hours per weekend day; or (d) four days per week, for 
part-time operators scheduled to work on both Saturdays 
and Sundays. In addition, part-time operators would not 
be scheduled for less than three and one-half hours of 
work on any given day. 

The current provisions limit part-time operator work 
schedules to no more than five hours per day. Mr. Michael 
Burns, General Manager of the Department of Public 
Transportation reports that this provision should create 
longer term part-time employment opportunities for 
Transit Operators. In addition, this provision should 
improve the capability of Mum to expand weekend service 
at a lower cost by using such part-time Operators and 
thereby reducing the need for overtime for existing 
Transit Operators. 

Muni Metro Runs - The new provisions require that not 
only the primary runs, but also the scheduled fall-backs of 
the runs, be stated on the Operators' schedules. A fall- 
back is a mechanism for permitting the scheduled 
continuous operation of the vehicle, while scheduling 
individual breaks for the individual Transit Operators. 
When a Transit Operator is scheduled for a break, 
another Operator will take over the vehicle so that service 
can continue without interruption. 

Muni Metro Assignments - The new provisions permit 
Muni Metro dispatchers or other appropriate authority to 
assign Muni Metro Operators to any Muni Metro vehicle 
on any Metro line at any Metro terminal at the end of any 
one-way trip. In addition, the K and M Muni Metro lines 
may be combined in establishing assignments provided 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



tbat the Operators trading cars at the Metro Station are 
assured safe arrangements for making such car transfers. 

The current provisions (1) except for combined K and M 
lines, do not permit Muni Metro Operator reassignments 
against the Operator's wishes for more than three round- 
trips daily on other than the operator's primary lines; (2) 
specifically defines a surface trip between West Portal 
and Church/Duboce as a half a round trip; (3) defines the 
J, K, L, M and N as separate lines; and (4) does not 
permit the K and M lines to be combined for Operator 
assignments against the Operator's wishes for more than 
six half round-trips on the combined K-M line. 

According to Mr. Burns, by ehminating the ability of the 
Operator to refuse such reassignments, this new provision 
will allow Muni more flexibility to reassign Operators, 
which will be particularly useful in recovering from 
service disruptions on individual lines. 

Fall-Back Policy - The proposed provisions would (1) 
permit fall-backs for Light Rail Vehicle (LRV) Operators 
to occur at any terminal, West Portal or Church/Duboce 
Stations; (2) require that each location where a fall-back 
occurs have access to a telephone and be equipped with 
adequate separate restrooms for male and female 
operators and, where practicable, such restrooms will not 
be portable toilets; (3) require that fall-backs not be less 
than 17 minutes at fall-back locations where a rest area is 
not currently available (i.e., 2 nd and King, 48 th and Judah 
and 46 th and Wawona); and, (4) require that unscheduled 
fall-backs not result in the Transit Operator missing by 
more than one hour his or her scheduled "Split Time" 1 or 
scheduled end of shift. 

The current provisions (1) only permit fall-backs to occur 
at either West Portal or Montgomery Stations; (2) require 
separate restrooms for male and female operators, with 
specific requirements for ventilation, safety, and 
cleanliness, a lounge area and food and snack facilities; 
and (3) require fall-backs at the end of any trip or period 
of work lasting more than 105 minutes and prohibit work 



1 "Split Time" is a period of Transit Operator time off between scheduled hours in the 
morning and scheduled hours of work later during the same day. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



assignments lasting more than 120 minutes without 
providing a fall-back. 

Mr. Burns reports that the new provision will allow Muni 
to create operating schedules which are easier to 
maintain during the necessary Operator breaks. 

Proof of Payment Program - The proposed provisions 
would permit the Proof of Payment Program that is 
currently on Breda cars in revenue service to be expanded 
to include operation with one Transit Operator for up to 
three cars in the tunnel providing additional service and 
for two cars per train in revenue service on the street. The 
Proof of Payment Program allows Muni to collect fares on 
the street, and provide more efficient boarding of vehicles 
through the second or third vehicles of the train without 
additional Operators. In addition, the Proof of Payment 
Program can be expanded to other Muni Metro service 
when: (1) the Safety Committee, established by Section 
21.1 of the existing MOU, addresses safety and security 
concerns on the Proof of Payment Program; (2) the Safety 
Committee submits recommendations to Muni 
management no later than October 1, 1999 for 
establishing guidelines for the responsibility of operators 
for incidents and accidents that occur on the second or 
third car; and, (3) Operators displaced as a result of the 
Proof of Payment Program are reassigned to another 
Operator position. 

The current Proof of Payment provisions state that this 
Program is limited to the Breda cars and for up to two 
cars in the tunnel and two cars per train on the street, 
with the condition that there be no resulting reduction in 
Operator staffing levels. 

This new provision, according to Mr. Burns, will eliminate 
the previous requirement of no reductions in Operator 
staffing levels, and thus should result in the need for 
fewer Operators, and ultimately salary and benefit cost 
reductions, at an estimated annual savings of $500,000. 
Mr. Burns does not anticipate any reductions in revenues 
from the expanded Proof of Payment Program. 

Lateness and Absence Without Leave (AWOL) Program - 
The proposed provision would change the language from a 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 

"Miss Out Prevention Program" to a "Lateness and 
Absence Without Leave Prevention Program" and impose 
more stringent disciplinary actions for each time a 
Transit Operator fails to report to work without 
notification. Under the proposed amendment, within an 
eight-month period, after the first violation of this 
provision, an Operator could be disciplined by up to a two- 
day suspension. After the second violation, an Operator 
could be disciplined by up to a ten-day suspension and 
after a third or further violation, an Operator could be 
disciplined by termination. 

Under the current provisions, Operators cannot be 
disciplined with termination until at least their fifth 
violation and do not receive any suspensions until at least 
their third violation of this provision within an eight- 
month period. Mr. Burns notes that, unless there are 
extenuating circumstances, all Muni Managers have been 
advised to discipline Operators to the maximum level of 
the proposed new provisions of the AWOL Program 
disciplinary measures. 

The proposed amendment would also delete a side letter 
of agreement dated May of 1991, regarding Proof of 
Payment fare collections on the Light Rail Vehicles 
(LRVs) because these provisions are no longer applicable. 

Comments: 1. As noted above, this is the third amendment to the 

MOU with the Transit Workers' Union Local 250-A. Ms. 
Alice Villagomez of the Department of Human Resources 
reports that the first amendment to this MOU was 
approved in February of 1999 to provide an Employee 
Assistance Program for Transit Operators. The second 
amendment, approved in April of 1999, extended health 
and retirement fringe benefits to part-time Transit 
Operators. 

2. In July of 1996, the Budget Analyst's Office conducted 
a management audit of the Municipal Railway. This 
management audit contained 97 recommendations, 
including recommendations that the Muni implement a 
full Proof of Payment Program, reassign Transit 
Operators from the second and subsequent cars of 
multiple LRV trains to improve Muni's ability to meet 
scheduled service requirements and negotiate operational 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



improvements to allow more efficient use of platform 
Operators. Several of the operational improvements 
included in the proposed MOU will address issues 
identified by the 1996 management audit. 

3. The proposed MOU extends from July 1, 1996 
through June 30, 2000. If the proposed amendment is 
approved, which contains a 5.5 percent wage increase 
effective July 1, 1999, the cumulative wage increases for 
9163 Transit Operators would be 14.5 percent, over the 
four-year term of the MOU, or an average of 3.63 percent 
annually. Such wage rates are as follows: 

Effective Date Percent Increase Hourly Rates 



July 1, 1996 


4.7% 


$19.45 


July 1. 1997 


2.2% 


$19.88 


July 1, 1998 


1.4% 


$20.15 


Julv 1, 1999 


5.5% 


$21.26 



Cumulative Pet. Increase 13.8% 

Under the existing FY 1996-97 to FY 1999-2000 MOU, 
there are no specific provisions for salary increases for FY 
1999-2000. Instead, the MOU states that the parties can 
reopen the MOU for basic wage rates and for two non- 
economic issues for each party, which is the subject of the 
proposed ordinance. 

4. Given that there are 2080 hours per work year, the 
FY 1999-200 annual salary for a Muni Transit Operator 
would be $44,221. This does not include any overtime pay, 
differential pay or other additional benefits provided. Mr. 
Burns reports that the average full-time Transit Operator 
works approximately 400 overtime hours per year, at a 
rate of time and one-half, or $31.89 for FY 1999-2000. for 
additional wages of $12,756 or average total annual 
wages of $56,977 per Transit Operator. 

5. In accordance with Charter Section A8.404, on or 
before the first Monday of August each year, the Civil 
Service Commission must certify to the Board of 
Supervisors the average of the two highest wage 
schedules in effect on July 1st of that year for comparable 
Transit Operators in municipalities with a population of 
not less than 500.000 and employing not less than 400 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



Transit Operators. Charter Section A8.404 also states 
that the Board of Supervisors shall fix wage schedules for 
Transit Operators which are not in excess of the average 
of the two highest wage schedules, as certified by the 
Civil Service Commission. On August 2, 1999, the Civil 
Service Commission certified that the average of the two 
highest wage schedules (based on $22.26 per hour at the 
Massachusetts Bay Transportation Authority in Boston 
and $20.88 per hour at the Santa Clara Valley 
Transportation Authority in San Jose) was $21.57 per 
hour, or an increase of 7.04 percent greater than the 
current Muni Transit Operator wage rate. As noted 
above, the proposed amendment includes a wage rate 
increase of 5.5 percent from $20.15 to $21.26 per hour, or 
$.31 less than the average of the two highest wage 
schedules surveyed. 

6. It should be noted that, in accordance with Charter 
Section A8. 404(e), the surveyed wage schedules reflect the 
maximum rates of pay provided in these other 
municipalities. These maximum wage rates are then used 
to determine the wage rates for Muni Transit Operators. 
However, the Budget Analyst notes that at Muni, it takes 
only 31 months (or approximately 2Vi years) to reach the 
maximum wage rate. In contrast, it takes 48 months (or 
four years) to reach the maximum wage rate at the 
Massachusetts Bay Transportation Authority and 54 
months (or \ x /i years) to reach the maximum wage rate at 
the Santa Clara Valley Transportation Authority. 
Therefore, although Muni wage rates are being set at 
slightly less than the average of the two highest wage 
schedules surveyed, it takes Muni Operators considerably 
less time (17 to 23 months less time) to achieve these 
higher wage rates than it takes these other systems' 
transit operators to achieve a comparable level of 
maximum wages. 

7. The Budget Analyst also notes that when the 
second amendment to the Transit Workers MOU was 
approved in April of 1999, the Budget Analyst reported to 
the Board of Supervisors on the results of an actuarial 
analysis conducted by Towers Perrin Company, which 
was completed in August of 1998. As required by Charter 
Section A8.404, this actuarial analysis was conducted for 
the annual certification by the Civil Service Commission 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



of the monetary value of the conditions and benefits for 
Muni Transit Operators, as compared with the two 
transit system operators having the highest wage 
schedules. This previous actuarial survey found that the 
aggregate dollar value of Muni Operators retirement, 
vacation and medical benefits was $1,489,000 greater 
than the value of the same benefits that were provided to 
the two highest wage schedule transit agencies (i.e., 
Massachusetts Bay Transportation Authority and Santa 
Clara Valley Transportation Authority). This was 
primarily a result of the City's pickup of employee 
contributions for retirement and medical benefits. 
However, a comprehensive valuation of not only the value 
of these benefits, but also other economic elements of the 
MOU concluded that Muni Transit Operators were 
approximately $3.5 million below the aggregate value of 
the same conditions and benefits in the two comparable 
transit systems. Ms. Janet Bosnich of the Department of 
Human Resources reports that a draft actuarial analysis 
has recently been completed for 1999 and reflects similar 
findings. 

8. As shown in Attachment 2. the Controller's Office 
estimates that the proposed ordinance will result in 
incremental costs of $6,206,429 for FY 1999-2000, as a 
result of the proposed wage and related fringe benefit 
increases. The proposed 5.5 percent salary increase on 
July 1, 1999 is anticipated to result in approximately a 
6.34 percent cost increase above the Transit Workers' 
current base salaries for FY 1999-2000. The Budget 
Analyst concurs with this analysis. Mr. Matthew Hymel 
of the Mayor's Office reports that the proposed costs for 
this MOU will be funded from the Salary and Benefits 
Reserve included in the FY' 1999-2000 budget. 

9. In summary, the proposed ordinance would 
implement the third amendment to the Transit Workers 
MOU. which extends from July 1. 1996 through June 30, 
2000 and covers approximately 2.000 Muni Transit 
Operators and Trainee Operators. The basic maximum 
wage rates would be increased by 5.5 percent from $20.15 
to $21.26 per hour for Transit Operators and from $12.70 
to $13.40 for Trainee Operators, effective July 1, 1999. 
The proposed amendment also includes six other 
provisions to improve Muni management's flexibility in 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 

assigning Operators and vehicle assignments and are 
intended to improve the efficiency and operations of Muni. 

Including the proposed 5.5 percent wage increase, the 
cumulative wage increases would total 14.5 percent over 
the four-year term of the MOU, or an average of 3.63 
percent per year. In accordance with Charter Section 
A8.404, on August 2, 1999, the Civil Service Commission 
certified that the average of the two highest wage 
schedules was $21.57 per hour, or an increase of 7.05 
percent greater than the current Muni Transit Operator 
wage rate of $20.15. Hence, the proposed amendment 
includes a wage rate increase which is $.31 less than the 
average of the two highest wage schedules surveyed. 
Although Muni wage rates are being set at slightly less 
than the average of the two highest wage schedules 
surveyed, it takes Muni Operators considerably less time 
(17 to 23 months less time) to achieve these higher wage 
rates then it takes other systems' transit operators to 
achieve a comparable level of maximum wages. 

In addition, an actuarial survey found that the aggregate 
dollar value of Muni Operators retirement, vacation and 
medical benefits was $1,489,000 greater than the value of 
the same benefits that were provided to the two highest 
wage schedule transit agencies. However, a 
comprehensive valuation of these benefits, as well as 
other economic elements of the MOU concluded that Muni 
Transit Operators were approximately $3.5 million below 
the aggregate value of the two comparable transit 
systems. Similar draft findings have resulted in 1999. 

The Controller's Office estimates that the proposed 
ordinance will result in incremental costs of $6,206,429 
for FY 1999-2000, as a result of the proposed wage and 
related fringe benefit increases. The increased costs 
resulting from this proposed MOU would be funded from 
the FY 1999-2000 Salary and Benefits Reserve. 

Recommendation: Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



PUG 4'99 12:24 FR 



Length of 
Employment 

- 35 days 
0-6 months 
7-12 months 
13 -18 months 
19-24 months 
25 - 30 months 
31 plus months 



415 557 4919 TO BUDGET ANALYST P. 03/03 

Attachment 1 



FY 1B99-00 Rates of Pay for Transit Operators 



FOR THE RETRO 



Percertageof 
Hourly Rate 



100% of Trainee Rate 
70% of jOperator Rate 
75% ofjoperator Rate 
80% of|Operator Rate 
85% of|Operator Rate 
90% of Operator Rate 

100% oft Operator Rate 



9163 rates 
07/01 /19W 

$13.4000 

$14.8820 
S15.9450 
$170080 
$18.0710 
$191340 
$21.2600 



Paid 7/1/99 


Difference 


to present 


Amount 


Percent 


$12.7000 


$0.7000 


5.5118% 


$14 1050 


$07770 


5 5087% 


$151125 


SO 8325 


5.5087% 


$16.1200 


$0 8880 


5.5087% 


$17.1275 


$0 9435 


5.5087% 


$18.1350 


$0 9990 


5.5087% 


$20.1500 


S1 1100 


55087% 



3 4/95 



10 



** TOTAL PAGE. 003 ** 



JUL-2S-99 14 = 29 FROM=CCSF CONTROLLER ID= ^°™^Lf PAGE 2/3 

\ PageTorT 

H CITY AND COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER 

Edward Harrington 
Controller 




My 27, 1999 



Ms. Gloria L. Young, Cleik of the Board 

Board of Supervisors 

City Hall, Room 244 

1 Dr. Carlton B. Goodlctt Place 

San Francisco, CA 941 02 

RE: Amendment to Memorandum of Understanding with Transit Worker's Union Local 250-A 
File No. 99-1463 



Dear Ms. Young: 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to the 
Memorandum of Understanding between the City and County of San Francisco and the Transit Worker's 
Union Local 250-A, for fiscal year 1999-2000. The amendment covers the period July 1, 1999 through 
June 30, 2000, and affects approximately 2,000 employees with a salary base, including budgeted 
overtime, of approximately $97.9 million. 

Based on our analysis, the amendment will result in incremental costs of approximately $6.2 million in FY 
1999-2000. The amendment will result in a cost increase of approximately 6.34% above base salaries for 
FY 1 999-2000. Please see Attachment A for specific cost estimates. 

If you have additional questions or concerns please contact me or Peg Stevenson of my staff at 554-7500. 
Sincerely, 





Edward M Haninjiron 
Controller 

cc: Alice Villagomez, ERD 

Harvey Rose, budget Analyst 



15-554-7500 City HaJW Dr. Caritoe B. Coodlett rUce • Room 316 - San Fraacfeco CA 94102-4694 FAX 415-554-7466 



11 



JUL.-2B-33 14 : 30 FROMCCSF CONTROLLER 



Attachment A 

Transit Worker's Union, Local 250-A 
Estimated Costs 1999-00 
Controller's Office 



Annual Incremental Costs/fSavinas) FY 1999-00 

Wage increases 

Up to 5.5% on July 1.1999 $5,381,919 

Wage-Related Fringe Increases 824.510 

Total Estimated Incremental Costs 6.206.429 



Page 'I ot 'I 



Annual Amount Above 1998-99 Level $6,206,429 



Incremental Cost % of SaJary Base 6 -34<W 



12 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 

Item 2 - 99-1455 



Department: 



Item: 



Recreation and Park Department (RPD) 
Department of Public Works (DPW) 
Department of Parking and Traffic (DPT) 

Hearing to consider the release of reserved funds in the 
amount of $8,801,092 for the purpose of funding 
infrastructure improvements to the West End area of 
Golden Gate Park. 



Amount: 
Source of Funds: 

Description: 



$8,801,092 

1992 Golden Gate Park Infrastructure General Obligation 
Bond Fund proceeds 

In October of 1997, the Board of Supervisors approved an 
ordinance (File No. 101-97-13) appropriating $25,105,000 
of the 1992 Golden Gate Park Infrastructure General 
Obligation Bond Fund proceeds for various capital 
improvement projects at Golden Gate Park. Of the total 
funds of $25,105,000, the Board of Supervisors placed 
$16,698,000 on reserve, pending the Department of Public 
Works' submission of contract cost details. The Finance 
Committee subsequently released $8,166,908 of the 
$16,698,000, leaving a balance of $8,801,092 on reserve. 

This request would authorize the release of the remaining 
$8,801,092 for the purpose of funding infrastructure 
improvements to the West End area of Golden Gate Park. 
According to Ms. Deborah Learner of the Recreation and 
Park Department (RPD), the West End area is the 
western portion of Golden Gate Park which is bound by 
36 th Street to the east, the Great Highway to the west, 
Fulton Street to the north and Lincoln Way to the south. 

Documentation submitted by the RPD shows the 
construction work to be performed in the West End area 
will include the following: 

1. The installation of a new sewer line to collect and 
transport waste water from various facilities in the 
West End area and route them to an existing sewer at 
36 th and Fulton Streets; 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



13 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 

2. The installation of a new drainage system to collect 
and transport storm runoff from the roadways along 
John F. Kennedy, Martin Luther King, Jr. and Chain 
of Lakes Drives; 

3. The construction of a new water supply system in the 
West End area, including drinking water fountains 
and fire hydrants; 

4. The installation of a water system to reclaim water 
from wells beneath the West End area and to use such 
water to irrigate land and fill the lakes in Golden Gate 
Park; 

5. The installation of a sanitary force main and sewer 
ejector system to collect and transport waste water 
from a restroom facility in the West End area to an 
existing elevated sewer on 36 th Street; 

6. The replacement of the existing manual irrigation 
system at various locations in the West End area with 
a new automatic irrigation system; 

7. The installation of new lighting fixtures along various 
roadways in the West End area; 

8. Electrical improvements to various facilities in the 
West End area, including the Angler Lodge, Golden 
Gate Park Horse Stables and Model Yacht Clubhouse; 
and 

9. Pathway and various American with Disabilities Act 
(ADA) improvements in the West End area. 

Budget: The construction contract for all of the infrastructure 

improvements in the West End area of Golden Gate Park 
totals $7,140,787 and was awarded to JMB Construction, 
Inc., which submitted the lowest bid pursuant to a DPW 
Invitation for Bids process. 

Attachment I, provided by DPW. contains a list of the 
firms that submitted bids and the amounts of each bid. 

Ms. Learner advises that the total estimated cost of the 
proposed infrastructure improvements is $8,967,019 or 
$165,927 more than this request of $8,801,092. Ms. 
I .earner states that the funding source for the additional 
$165,927 is previously appropriated, but unspent funds 
from the proceeds of the sale of 1992 Golden Gate Park 
Infrastructure General Obligation Bonds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



A summary budget for tbe proposed infrastructure 
improvements to the West End area in the amount of 
$8,967,019 is as follows: 



Construction Contract 


$7,140,787 


(Awarded to JMB Construction, Inc.) 




Construction Contingency (10%) 


714,079 


Department of Public Works 




Construction Management 


645,950 


Project Management 


62,987 


Engineering 


65,570 


Design Support 


189,664 


Department of Parking and Traffic 




Construction Support 


42,982 


Other Construction Costs 




PG&E 


100,000 


Pacbell 


5.000 


TOTAL 


$8,967,019 



Comments: 



Recommendation: 



1. Attachment II, provided by DPW, contains the budget 
details to support the in-house civil service costs to the 
City for DPW Project Management ($62,987), 
Construction Management ($645,950) and Engineering 
($65,570) for this project. 

2. Attachment III, provided by DPW, includes a 
breakdown of the in-house civil service costs, totaling 
$189,664, for DPW Design Support for this project. 

3. Attachment F7 is a memorandum from the DPT to 
DPW estimating the in-house civil service costs to the 
City for the DPT Construction Support ($42,982) for this 
project. 

4. Attachment V, provided by Mr. Patrick Rivera of DPW, 
contains the budget details to support the other 
construction costs in the amount of $105,000 for this 
project. 

Approve the proposed release of reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



15 



Aucacnment l 



Crtf and County of San Francisco 

Department of Public Works 

TABULATION OF BIDS 



SPEC NO.: 
TITLE: 



1076N 

Golden Gate Park 
West End Utilities 
Contract Areas 6, 11 and 9 



BIDS RECEIVED: 
BIDDERS: 



May 19, 1999 



JMB Construction Inc. 

Proven Management Inc. 

Flores/lnterstate A Joint Venture 

Stacy and Wrtbeck/Mitchell/Esquivel a JV 

McKee Corporation USA 

D'Arcy & Harty Construction. Inc. 

NCCl/Shimmick A JV 



WBE/LBE 

MBE/LBE 

MBE/JV7.5% 

MBE/LBE/ JV7.5% 

MBE/LBE 

LBE 

JV7.5% 



Base Bid 
7,140.787 
7.331,731 
7,408.617 
7.448.888 
7.856.074 
7,954.445 
9.740,950 



Average Bid: 7.840,213 

Engineer's Estimate 9.253.667 

% of Engineer's Estimate 85% 



APPARENT LOW BIDDER 



SUBCONTRACTORS: 



R: 


JMB Construction Inc. 






1 50 Executive Park Blvd. 


Suite 




San Francisco. CA 94134 






Tel (415) 468-1202 




BassFJectnc 


Electrical 


1.075.000 


Russ Enterprises Inc 


Traffic Control 


400,000 


Vickers Concrete 


Pavement Sawcuttong 


75,000 


Harty Ppefines 


Sewer Work 


180,000 


Bauman Landscape 


Irrigation 


925.000 



Patrick Rivera 
Marie Primeau 
Linda Chin 



SLsl 

May 19. 1999 



Harlan Kelly 
Don Eng 
Foon Chow 



DPW Accounting 
Maurice Wilfiams 
Bill Webb 



Helen Liu 
AH bidders 



15 



06-04-98 05:16pa FrosrDPW/BOE 



415-558-4518 T-175 P. 02/03 F-982 

Attachment ill 



Construction Support Labor Cost Estimates 
Golden Gate Park, West End Utilities 









No. of 


i 


Classification & Title 


Hourly Rate 


hours/week 


W&CKS 


Extension 


Project Management 










5504, PM II 


98.95 


10 


52 


51 .454.00 


1450, Exec Sect I 


55.45 


4 


52 
Total 

No. of 


11,533.60 ! 
62.987.60 


Classification & Title 


Hourly Rate 


hours/week 


weeks 


Extension 


Construction Management 








I 


5210. Senior Civil Engineer 


107.50 


7 


52 


39,130.00 , 


5206, Assoc. Civil Engineer 


80.00 


38 


60 


182,803.20 


5204, Asst. Civil Engineer 


62.00 


22 


56 


76,384.00 


5318, Inspector 


102.00 


58 


52 


307,632.00 


Materials Testing & Sampling 






Total 
No. of 


40.000.00 
645,950.00 

i 


Classification & Title 


Hourly Rate 


hours/week 


weeks 


Extension 


Project Engineer 










5210, Senior Civil Engineer 


107.50 


1 


8 


860.00 


5208, Civil Engineer 


107.63 


2 


40 


8.610.40 


5206, Assoc. Civil Engineer 


80.00 


13 


52 


54.399.99 


1426, Secretary 


42.50 


2 


20 
Total 


1.700.00 
65,570.39 



17 



08-04-99 05:!6pb Froa-DPW/BOE 



415-558-4519 T-17S P. 03/03 P-992 

Attachment III 



Design Support Labor Cost Estimates 
Golden Gate Park. West End Utilities 









No. of 




Classification & Title 


Hourty Rate 


hours/week 


weeks 


Extension 


Electrical 










5236 AssL Electrical Eng 


62.00 


6 


52 


19.344.00 


5238 AssL Electncal Eng 


62.00 


5 


52 


16,120.00 


5352 Drafter 


48.00 


4 


16 


3.072.00 


5240 Electrical Eng 


85.00 


3 


52 


13.260 00 


5242 Senior Engrceer 


98.00 


1 


26 
Total 

No. of 


2.548.00 
54344.00 


Classification & Title 


Hourly Rate 


hours/week 


weeks 


Extension 


Mechanical 










5254, Assoc Mech Engr 


76.95 


6 


52 


24.008.40 


5254. Assoc Mecn Engr 


76.95 


6 


52 


24,008.40 


5346, Mech Engr Assoc II 


57.12 


5 


52 


14.851.20 


1426. Senior Clerk/Typist 


44.64 


2 


52 


4,642.56 


5258, Senior Mech Engr 


103.56 


1 


52 
Total 

No. of 


5.385.12 
72,395.68 


Classification & Title 


Hourly Rate 


hours/week 


weeks 


Extension 


Landscape Architecture 










5274, Landscape Arch. 


89.00 


4 


24 


8.544.00 


5262.Assoc.Land.Arch. 


56.00 


8 


30 
Total 

No. of 


15.840.00 
24,384,00 


Classification & Title 


Hourly Rate 


hours/week 


weeks 


Extension 


Hydraulics 










5210, Senior Civil Engineer 


117.83 


2 


1 


235.66 


6318. Inspector 


101.77 


2 


23 


4.581.42 


5222, Sanitary Engineer 


74.07 


5 


52 


19.258.20 


5364, Drafter 


65.26 


4 


2 


522.08 


5381, Student Intern 


45.78 


2 


21 
Total 

No. of 


'.922.76 
26,600.00 - 


Classification & Title 


Hourly Rate 


hours/week 


weeks 


Extension 


Roadway 










5210. Senior Civil Engineer 


107.50 


1 


8 


860.00 


5206, Assoc Civil Engineer 


80.00 


8 


16 


10.240.00 


1426, Secretary 


42.50 


4 


2 
Total 


340.00 
11,440.00 






Grand Total 


5189, 6bA 



18 



Page 1 ot 2 



• jr>4^i" 




DCMKTIUlfTO*f 



uTumc 



Traffic Engineering Division 
City and County of San Francisco 

WILLIE LEWS BROWN. JR. MAYOR 

STUART R. SUNSHINE EXECUTIVE DIRECTOR 



[jjE @ ED i i| 

111 JUN 07 1999 I 



n 




DATE: ,.^ 
TO: 

THRU: 

FROM: 

SUBJECT: 



May 27, 1999 - 

Patrick Rivera 
DPW-Project Manager 

Peter Wrjo^^J 

Senior Transportation Engineer 

Al Herceljl — 

Assoc. Transportation Engineer 

GGP West End Utilities Project 
Construction Support Estimate 
1076N 



As per your request, attached is a cost estimate to support the subject project during 
construction. Our Department will perform the following task during construction phase: 

a. Attend construction progress meeting. 

b. Review and approved Contractor's Traffic Control Submittals. 

c. Field check for proper implementation of Traffic Routing 
Specifications. 

d. Restore pavement striping and markings after construction. 

e. Survey and Replace any traffic sjc^sJttTaXwill be damaged during 
co n s tru ction 

We will survey the project Omits to have an inventory of traffic signs that will be 
relocated or damage during construction. We include an approximate cost of $5,000. to 
anticipate the replacement of traffic signs. The total cost for our Department to support 
the subject project during construction phase is $43,000.00 

Thank you for your cooperation. If have any questions, please call me at 554-2324. 



(415) 554-2300 FAX (415) 554-2352 



25 Van Ness Avb„ Suite 345 



19 



San Francisco. CA 94102-4576 



Page 2 of 2 



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20 



Date: 8/5/99 
Sender: Patrick Rivera 
To: Gabriel Cabrera 

Priority: Normal 

Receipt requested 
Subject: Golden Gate Park, West End Utilities 



Gabriel, 

The following is an explanation on the PG&E and Pacbell Other 
Construction Costs of $100,000 and $5,000 respectively: 

PG&E: PG&E provided a verbal estimate on the work they will provide 
for this project in the order of $80,000 to $100,000. The actual 
amount will not be determined until they begin design. However, PG&E 
will not begin design until after award of this contract. 

Pacbell : Pacbell provided an estimate for installing phone lines for 
this project in the amount of $4,400. The estimate was only good for 
3 days. For budgeting purposes, $5,000 was used. The actual cost 
will be determined after the contract is awarded. 

If you have any further questions, please call me at 558-4045. 

Thanks 
Patrick Rivera 



21 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



Item 3-99-1482 

Department: 

Item: 



Description: 



Department of City Planning 

Hearing to consider the Planning Department's 
enforcement program, including how the enforcement 
program will be enhanced to vigorously enforce the 
Planning Code and terms of conditional use authorization 
and how the positions that were approved in the FY 1999- 
2000 Budget will be used to expand enforcement. 

The FY 1999-2000 Budget as approved by the Board of 
Supervisors included a total of 13 new, fee-based positions 
for the Department of City Planning. Eleven of these 13 
new, fee-based positions would be used to enhance 
Neighborhood Planning services, including Planning Code 
enforcement services. 

Attachment I provided by the Department of Citj 7 
Planning, explains the intended organization and use of 
the eleven new, fee-based positions for the enforcement 
program. 

Attachment II, also provided by the Department, shows 
the cost details of the positions as included in the FY 
1999-2000 Budget. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Attachment I 
Page lot 2 



San Francisco Planning Department 

FY 1999-2000 Budget Proposal: Neighborhood Planning Unit's Request for Additional Staff 



Background 

The San Francisco Planning Department is composed of six units which undertake various aspects 
of current and long-range planning and environmental review for the City of San Francisco. The 
Neighborhood Planning unit within the Department is staffed by 50 positions and is organized 
geographically to undertake the review of all types of planning applications and building permits 
and to enforce the Planning Code. This unit engages in neighborhood outreach to better understand 
neighborhood needs and, once sufficiently funded, to develop plans, design guidelines, enforcement 
programs and other special programs designed to respond to the unique needs of individual 
neighborhoods. The Major Environmental Analysis Unit is staffed by 19 posidons and is charged 
with conducting environmental review California Environmental Quality Act (CEQA). 

In developing the Department's fiscal year 1999-2000 budget and work program, the Neighborhood 
Planning and Major Environmental Analysis Units undertook a needs assessment which examined 
the work flow, including the type and number of applications received and, for Neighborhood 
Planning, needs expressed by the neighborhoods in last year's Neighborhood Planning Survey - a 
survey of neighborhood organizations relating to planning issues. This assessment revealed that the 
number and complexity of applications has risen dramatically in the past year and far exceeded the 
number of applicauons that could be reviewed by the current staffing levels, that the applications 
brought in fees that would fully support enough new staff members to adequately review these 
applications; that by law the money from these applications must be put to use in reviewing the 
applications; and that the number one planning priority for neighborhood organizations is 
enforcement. 

The Proposal 

To respond to this needs assessment, the Department is asking for 13 new positions, fully paid for 
by application fees, to review applications and to enforce the Planning Code and monitor mitigation 
measures. Two of the positions wiU be review projects for CEQA compliance. This review is 
required by law. Projects cannot be considered for approval without CEQA review. Members of 
the public pay hefty fees to enable the Department to undertake this review. Without the new staff, 
the applicant's money is not put to any use and their project is frozen. Eleven of the positions will 
be assigned to Neighborhood Planning to review applications and enforce the Planning Code. 

The Neighborhood Planning Unit currently has four geographic teams, each staffed by 6-9 planners 
and one support staff, as well as several pooled support staff, two Planner V's and the Zoning 
Administrator. Originally, the Department requested 18.5 positions for this unit. At that time, the 
proposal was to bring each of the four teams up to 10 people each, create a fifth geographic team 
and create one "tactical" team. The Mayor's office worked with the Department to arrive at a 
reduction in the request - from 18.5 to 11. With this reduction, the proposal changed by omitting 
the fifth team. (This decision was made by the planners who staff the teams now. It was based on 
the fact that 10 persons per team appears to be the optimal number of staff on a team in order to 



23 



AUG 06 '99 12:20AM SF PLANNING DEPT 4155586426 ■ p. 3 ' 

Attachment. 



\ ■ . Page 2 of 2 

have enough expertise of various types to serve a neighborhood, to provide backup during vacations 
and illnesses, etc.) Each of the four teams would be brought up to 10 persons each and a tactical 
team would be created under the 1 1 -person proposal. The tactical team would undertake the 
following duties: • 

1) develop. and coordinate a neighborhood-based enforcement program (see below for fuller 
explanation) 

2) undertake the second phase of a citywide historic resources survey 

3) revise Articles 10 and 11 of the Planning Code 

4) develop a training program for neighborhood planning staff to ensure planners know the code 
and implement it appropriately 

5) improve procedures 

6) facilitate neighborhood outreach for the teams 

7) when there are unexpected influxes in applications, help the geographic teams review cases. 

The Enforcement Program 

The enforcement program would be developed and coordinated by the tactical team and 
implemented by the geographic teams. Initially, the tactical team would work closely with . ■ 
representatives of umbrella organizations, in particular the Coalition for San Francisco's 
Neighborhoods and the Council of District Merchants, to assist in selecting neighborhoods and 
neighborhood issues on which to focus, and with representatives from the Building Department, the 
Mayor's Office of Neighborhood Services and City Attorney's Office to coordinate the. enforcement 
actions of other city agencies. The geographic team members would then work closely, with 
individual neighborhood groups to fine-tune the program based on the needs of each neighborhood. 
For instance, if 24th Street is chosen as one of the targeted areas, the neighborhood groups their may 
want the Department to focus on the illegal conversion of upper-story housing to office use. 
Another neighborhood may find illegal outdoor dining their most pressing problem. Still another 
may want the enforcement work to include several use-types. It is estimated that a minimum of one 
FTE of planner's time will be devoted to each of the quadrants to assure that the program continues 
to provide adequate enforcement efforts to San Francisco's neighborhoods, Additional resources 
would be allocated to the tactical team for this effort. The Zoning Administrator would play a key 
role in developing the program. 

The Department would commit to semi-annual reports to the Coalition and Council of District 
Merchants to ensure accountability and secure feedback on the program's efficacy. 

n:\sharc\yeebudga 



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25 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 

Item 4 -File 99-1488 



Department: 
Item: 



Services to be 
Performed: 

Description: 



Airport 

Resolution concurring with the Controller's certification 
that Airport Information Booth Services at San Francisco 
International Airport can be practically performed by a 
private contractor at a lower cost than if work were 
performed by City and County employees. 



Airport Information Booth Services 

The Airport Information Booth Services Program was 
established by the Airport in 1990 to provide centralized 
locations for the purpose of (a) providing information to 
air passengers regarding Airport facilities and services, 
available ground transportation services, regional hotel 
accommodations, and visitor services and events; and (b) 
selling transit passes for regional public transportation 
systems to employees. The Airport currently has a total of 
five information booths on the Arrival Level of the 
existing terminals at the Airport, which operate daily 
from 8 a.m. to 1 a.m. 



Polaris Research and Development, Inc., a private 
contractor, has provided Information Booth services to the 
Airport since the establishment of the program in 1990. 

Charter Section 10.104 provides that the City may 
contract with private firms for services which can be 
practically performed for a lower cost than similar work 
by City and County employees. 

The Controller has determined that contracting for the 
information booth services at the Airport for FY 1999- 
2000 would result in estimated savings as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



Citv-Operated Service Costs 


Lowest 

Salary 

Step 


Highest 
Salary- 
Step 


Salaries 
Fringe benefits 
Total 


$1,840,685 

491.510 

$2,332,195 


$2,169,446 

543.138 

$2,712,584' 


Contractual Service Cost 


1.562.207 


1.562.207 


Estimated Savings 


$ 769,988 


$1,150,377 



* Totals differ from the Controllers analysis due to rounding. 



Comments: 1. The Airport reports that Airport Information Booth 

Services were first certified as contractual services as 
required under Proposition J (Charter Section 10.104) in 
1990, and have been continuously provided by an outside 
contract since then. 

2. Ms. Alice Sgourakis of the Airport reports that the 
current Airport Information Booth Services Program 
contract with Polaris Research and Development, Inc. 
began on October 15, 1995. The contract term is for one 
year, with four annual renewals up to a maximum term of 
five years. According to Ms. Sgourakis, at the end of the 
current one-year renewal period on October 14. 1999, the 
Airport plans to exercise its option to renew this contract 
for the twelve-month period from October 15, 1999, 
through October 14, 2000. The renewal period 
commencing October 15, 1999, will be the final annual 
renewal of the five-year contract. 

3. The Contractual Services cost used for the purpose of 
this analysis is based on the current contractors costs to 
provide Information Booth Services for the twelve-month 
period from October 15. 1999 through October 14, 2000. 

4. The FY 1999-2000 Contractual Services Cost of 
$1,562,207 is $262,207, or 20 percent, more than the FY 
1998-99 cost of $1,300,000. Ms. Sgourakis reports that 
the increased costs are due to the addition of three new 
information booths to be located at the new International 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance and Labor Committee 

August 11, 1999 Finance and Labor Committee Meeting 



Terminal, scheduled to open in May of 2000, for a total of 
eight information booths at all Airport terminals. The 
number of new hires to cover the three new information 
booths for the new International Terminal include four 
new supervisors and twelve new agents to be hired in 
January of 2000 in preparation for the new booths to be 
opened in May of 2000, increasing total staff from 34 to 
50. 



Recommendation: 



5. The Controller's letter certifying compliance with 
Charter Section 10.104 and the supplemental 
questionnaire with the Airport's responses is shown in the 
Attachment to this report. 

Approve the proposed resolution. 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 




Harvey M. Rose 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



28 




CITY AND COUNTY OF SAN FRANCISCO 



a l : i i a i - 
Fage 1 ot 3 

OFFICE OF THE CONTROLLER 



Edward Harrington 
Controller 

John W. Madden 
Chief Assistant Controller 



June 3, 1999 



John L. Martin 

Airport Director 

San Francisco International Airport 

P.O. Box 8097 

San Francisco, CA 94128 



RE: Airport Information Booth services - FY 1999/2000 

Dear Mr. Martin: 

The cost information and supplementary data provided by your office on the proposed 
contract for Airport Information Booth services have been reviewed by my staff. 

If these services are provided at the proposed contract price, it appears they can be 
performed at a lower cost than if the work were performed by City employees at current 
salary and benefit levels. A statement of projected cost and estimated savings for Fiscal 
Year 1999-2000 is attached for your review. 

The requirements of Charter Section 10.104.15 relative to the Controller's findings that 
"work or services can be practically performed by private contract" have been satisfied. 
To complete the Charter requirements, it will be necessary for your department to 
secure approval of a resolution by the Board of Supervisors before entering into the 
private contractual arrangement. 




:dward Harrington, 
Controller 



Enclosure 



Geoff Rothman, Employee Relations Division 

Harvey Rose, Budget Analyst - Board of Supervisors / 



875 Stevenson Street • Room 235 -San Francisco CA 94103-0910 



29 



FAA 415-554-1** 



■ftrtacnroent 
fage Zot3 



SAN FRANCISCO INTERNATIONAL AIRPORT 

AIRPORT INFORMATION BOOTH SERVICES - FY 1999/2000 (1) 

COMPARATIVE COSTS OF CONTRACTING VS. IN-HOUSE SERVICES 

ESTIMATED CITY COSTS: 



Projected Personnel Costs 


Class 


| Positions 


BW Rate 


Low 


High 


Transit Manager III 


9142 


1.00 


2,672 


3,248 


71,757 


85,098 


Chief Transit Information Clerk 


9125 


2.00 


1,550 


1,881 


82,933 


98,188 


Senior Transit Information Clerk 


9124 


8.00 


1,477 


1,791 


316,108 


373,961 


Transit Information Clerk 


9122 


33.00 


1,414 


1,714 


1,248,325 


1,476,268 


Sr Account Clerk 


1632 


1.00 


1,381 


1,674 


36,945 


43,691 


Night Differential 










41,718 


49,339 


Bilingual Pay 










42,900 
1,840,685 


42,900 


Total Salaries 


45.00 


2,169,446 


Fringe Benefits 














Variable Fringes (2) 








. 


289,069 


340,696 


Fixed Fringes (3) 










202,441 


202,441 


Total Fringe Benefits 










491,510 


543,138 



ESTIMATED TOTAL CITY COST 

LESS: ESTIMATED CONTRACT COST (4) 

ESTIMATED SAVINGS 



2,332,195 2,712,583 

(1,562,207) (1,562,207) 

769,988 1,150,376 



Comments/Assumptions: 

1. These services have been contracted out since 1990. 

2. Variable fringe benefits also include retirement pickup for the designated classes. 

3. Fixed fringe benefits consist of health and dental rates plus an estimate of dependent coverage. 

4. Both the city and contract cost estimates do not include operating costs that would be 
the same under either scenario. This does not affect the estimated cost savings. 



30 



Page 3 of 3 
REVISED CHARTER 8.300-1 (Proposition J) QUESTIONNAIRE 

DEPARTMENT: SFIA Landside Operations 

CONTRACT SERVICES: Airport Information (A 1 ) Booth Program 
CONTRACT PERIOD: October 15, 1999 - October 14, 2000 

( 1 ) Who performed services prior to contracting out? 

Polaris Research and Development has performed these services since the program's 
inception in 1990. Airport Commission Resolution 95-0090 awarded the Airport 
Information Booth contract to Polaris for one year, with four additional one-year renewal 
options at commission discretion. The contract renewal for the fourth of four renewal 
options will be proposed to the Airport Commission upon certification of cost analysis. 

(2) Number of City employees laid-off as result of contracting out? 

None (see #1) 

(3) Explain disposition of employees if they were not laid off. 
N/A (see Item #1) 

(4) What percentage of a City employee's time is spent on services to be contracted out? 

N/A (see Item #1) 

(5) How long have the services been contracted out? Is this likely to be one-time or an 
ongoing request for contracting out? 

Services have been contracted out since program inception on October 15, 1990: this will 
be ongoing request for contracting out. 

(6) What was the first fiscal year of a Proposition J Certification? Has it been certified 
for each subsequent year? 

It was first certified in Fiscal Year 1 990'91 and has been certified each subsequent year. 

(7) How will contract services meet the goals of your MBE/WBE Action Plan? 

The firm is registered as a large local MBE firm with the Human Rights Commission. 
Currently eighty percent (80%) of the Polaris personnel employed on the AI program are 
minorities. In addition, the contractor is required to demonstrate "best efforts" to achieve 
at least a 20% goal to utilize local MBEs and WBEs as subcontractors, vendors and 
suppliers. 

(8) Does the proposed contract require that the contractor provide health insurance for 
its employees? Even it is not required, does the proposed contractor provide health 
insurance for its employees? 

Although the contract does not require that the contractor provide health benefits, the 
Contractor does offer a full benefits package to employees including health and disability 
coverage, life insurance, sick leave and vacation pay. The contractor also provides a 
40 IK retirement program for employees. 

(9) Does the proposed contractor provide benefits to employees with spouses? If so. are 
the same benefits provided to employees with domestic partners? If not, how does 
the proposed contractor comply with the Domestic Partner ordinance? 

Polaris provides benefits to employees with spouses and offers these benefits to domestic 
partners. 

Department Representative Alice Sgourakis 

Telephone Number: (650) 794-6516 

051ll5d.asl 



31 




City and County ofSan Francisco Cit y Hal1 



1 Dr. Carlton B. 



Meeting Minutes Goodiettpiace 

f ^m ^an Francisco, CA 

YJ&Bmm&£/ Finance and Labor Committee 



94102^*689 



Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano 
Clerk: Mary Red 



Wednesday, August 18, 1999 10:00 AM City Hall, Room 263 

Regular Meeting 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



DOCUMENTS DEPT. 

MEETING CONVENED j^p , g ^r. 

The meeting convened at 10:18 a.m. SAN FRANCISCO 

PUBLIC LIBRARY 
REGULAR AGENDA 



991392 [Authorizing agreements and acceptance of assets related to the dissolution of Western Addition Parking 
Corporation and the lease of the Japan Center Garages at 1660 Geary Boulevard and 1680 Fillmore 
Street] 

Ordinance authorizing the Department of Public Works to accept a gift of $550,000 from the City of San 
Francisco Western Addition Parking Corporation for the renovation of the Peace Plaza at the Japanese Cultural 
and Trade Center; approving the dissolution of the City of San Francisco Western Addition Parking 
Corporation and accepting the remaining assets and liabilities of said corporation; approving the transfer of 
said assets and liabilities to the Japantown Garage Parking Corporation; approving the form of lease of the 
Japantown Garage to the Japantown Garage Parking Corporation; ratifying previous actions taken in 
connection with the foregoing matters; and authorizing the taking of appropriate action in connection 
therewith. (Department of Parking and Traffic) 
7/9/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

8/4/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Ken Bruce, Budget Analyst Office; Jeff Mori, President, Japan 
Center Garage Corporation; Bob Davis, Director, Parking Authority; Supervisor Ammiano; Supervisor Bierman. Continued to August 18, 
1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert G. Davis, Director, Parking Authority; 

Edward Harrington, Controller. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance authorizing the Department of Public Works to accept a gift of $550,000 from the City of San 
Francisco Western Addition Parking Corporation for the renovation of the Peace Plaza at the Japanese Cultural 
and Trade Center; approving the dissolution of the City of San Francisco Western Addition Parking 
Corporation and accepting the remaining assets and liabilities of said corporation; approving the transfer of 
said assets and liabilities to the Japan Center Garage Corporation; approving the form of lease of the 
Japantown Garage to the Japan Center Garage Corporation; ratifying previous actions taken in connection with 
the foregoing matters; and authorizing the taking of appropriate action in connection therewith. (Department 
of Parking and Traffic) 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 1 Printed at 5:27 PM on 1/17/99 



Finance and Labor Committee 



Meeting Minutes 



August 18, 1999 



991266 [Amending Public Works Code relating to liens on delinquent water and sewer charges affecting 

individually metered tenant occupied single family homes and amending late payment and utility lien 
collection procedures] 

Ordinance amending Public Works Code Chapter X concerning the imposition of liens to recover revenues 
from delinquent water and sewer service accounts, by amending Section 150.1 to comport with organizational 
changes in the 1996 Charter, amending Section 150.2 to exempt the owners of tenant occupied single family 
dwellings from the imposition of water and sewer service liens; amending Section 150.3 for grammatical 
consistency; amending Section 1 50.4 to exempt the owners of tenant occupied single family dwellings from 
the imposition of water and sewer service liens, and deleting the phrase "special assessment"; amending 
Section 150.5 to exempt the owners of tenant occupied single family dwellings from the imposition of water 
and sewer service liens, for provision of written notice to other customers, and to permit the collection of 
administrative fees for overdue water and sewer service accounts; amending Section 150.6 to comport with 
organizational changes in the 1996 Charter; amending Section 150.7 regarding noticed hearings; amending 
Section 150.8 to eliminate the tax priority of hens filed under the existing ordinance; amending Section 150.9 
to establish a late payment penalty fee for unpaid closed accounts; amending Section 150.10 to create a 
process for transfer of liens and other overdue accounts to the Tax Collector and Bureau of Delinquent 
Revenue Collection and authorizing the recovery of attorney's fees and costs by the Bureau; amending Section 

150.1 1 regarding release of liens upon payment and disposition of funds collected; and amending Section 

150.12 increasing debt writeoff authority from S50 to $200 and authorizing the Bureau of Delinquent Revenue 
to compromise or abandon claims submitted to it by the Public Utilities Department. (Public Utilities 
Commission) 

(Amends Public Works Code Section 150.1 - 150.12 inclusive.) 
6/22/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 7/28/1999. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; John P. Mullane, Manager, Customer Service 
Bureau, Public Utilities Commission. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991489 [1999 Asian Art Museum Bond Sale - Issuance of the second and final series of bonds out of the total 
$41,730,000 approved by the voters on November 8, 1994] 

Resolution authorizing and directing the sale of not to exceed $16,730,000 City and County of San Francisco 

General Obligation Bonds (Asian Art Museum Relocation Project) Series 1999D; prescribing the form and 

terms of said Bonds; authorizing the execution, authentication and registration of said Bonds; providing for the 

appointment of depositories and other agents for said Bonds; providing for the establishment of funds related 

thereto; approving the forms of official notice of sale of Bonds and notice of intention to sell Bonds; directing 

the publication of the notice of sale and notice of intention to sell bonds; approving the form and execution of 

the official statement relating thereto; approving the form of the continuing disclosure certificate; approving 

modifications to documents; ratifying certain actions previously taken; and granting general authority to City 

officials to take necessary actions in connection with the authorization, issuance, sale and delivery of said 

Bonds. (Mayor) 

7/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Laura Opsahl Bordelon, Debt and Staff 

Administrator, Mayor's Office of Public Finance; Ikuko Satoda, Chief Financial Officer, Asian Art Museum; 

Edward Harrington, Controller. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 



City and County of San Francisco 



Printed at 5:27 PM on V27/99 



Finance and Labor Committee 



Meeting Minutes 



August 18, 1999 



Resolution authorizing and directing the sale of not to exceed $16,730,000 City and County of San Francisco 
General Obligation Bonds (Asian Art Museum Relocation Project) Series 1999D; prescribing the form and 
terms of said Bonds; authorizing the execution, authentication and registration of said Bonds; providing for the 
appointment of depositories and other agents for said Bonds; providing for the establishment of funds related 
thereto; approving the forms of official notice of sale of Bonds; directing the publication of the notice of sale 
and notice of intention to sell bonds; approving the form and execution of the official statement relating 
thereto; approving the form of the continuing disclosure certificate; approving modifications to documents; 
ratifying certain actions previously taken; and granting general authority to City officials to take necessary 
actions in connection with the authorization, issuance, sale and delivery of said Bonds. (Mayor) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991524 [State grant funds for the City Administrator-Solid Waste Management to establish the compost 

(converting plant debris to fertilizer), recycling and market development program at the St. Mary's 
Urban Youth Farm] 

Resolution authorizing the Solid Waste Management Program of the City and County of San Francisco to 
accept and expend $25,000 from the California Integrated Waste Management Board for an urban compost, 
recycling and market development pilot program. (Administrative Services Department) 
8/3/99, RECEIVED AND ASSIGNED to Public Health and Environment Committee. 
8/1 1/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jack Macy, Solid Waste Management 
Program. 

RECOMMENDED., by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991496 [Authorizing the PTC General Manager to execute an agreement with BART to pay MUNI $2,066,513 
for transferring riders to BART stations] 

Resolution approving an agreement between the City and County of San Francisco and the Bay Area Rapid 
Transit District authorizing payment to San Francisco Municipal Railway for transfer trips provided in fiscal 
year 1999. (Public Transportation Commission) 
7/29/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Harvey Rose, Budget Analyst; Nancy Whelan, Municipal Railway. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



991522 [Reserved Funds, Dept. of Public Works] 

Hearing to consider release of reserved funds, Department of Public Works (Special Gas Tax and Road Funds, 
Ordinance 355-94), in the amount of $622,661 to fund the first phase of the Chinatown Alleyways 
Improvement Project. (Department of Public Works) 
8/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Harvey Rose, Budget Analyst; Sherman Horn, Department of Public Works; Jasmine 
Kaw, Chinatown Community Development Center. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 5:28 PM on V27/99 



Finance and Labor Committee Meeting Minutes August 18, 1999 



991 102 [City Services to Pacific Bell Park] 
Supervisor Yee 

Hearing to discuss the cost and types of services the City's plans to provide to mitigate the traffic impacts Pac 
Bell Park games and events will have on the Potrero, South Beach and South of Market Area neighborhood. 
6/1/99, RECEIVED AND ASSIGNED to Transportation and Land Use Committee. 
6/4/99, TRANSFERRED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harry Yahata, CalTrans District Manager; Dennis Mulligan, Project 
Manager, CalTrans; Jose Luis Moscovich, Director of Plans and Programs, Transportation Authority; Jack 
Bair, Vice President, San Francisco Giants; Gerald Robbins, Department of Parking and Traffic; Jose 
Campos, Redevelopment Agency; Daniel Bell, Port of San Francisco; Cynthia Chono, Department of Public 
Works; Nancy Whelan, Municipal Railway; Jeffrey Leibovitz, Rincon-Point South Beach Citizens Advisory 
Committee; Walter Tac (CEO of Internet company at Second and Bryant Streets) ; Barry Taranto, United 
Taxicab Workers; Diane Aubry, President, Homeowners Association at 301 Bryant; Wendy Earl, President, 
Board of Directors, 601 4th Street Homeowners Association; Louise Bird; Rolf Mueller; Gerald Green, 
Director of Planning; Captain Alex Fagan, Police Department. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



ADJOURNMENT 

The meeting adjourned at 12:52 p.m. 



City and County of San Francisco 4 Printed at 5:28 PM on S/27/99 



■3 



CITY AND COUNTY 




Public Library,Gov't Info. Ctr., 5 th Fir. 
Attn: Susan Horn 
OF SAN FRANCISCO 



,BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



TO: ^Finance and Labor Committee 

FROM: Budget Analyst 

SUBJECT: August 18, 1999 Finance and Labor Committee Meeting 



August 13, 1999 DOCUMENTS DEPT. 
AUG 1 7 19S9 



SAN FRANCISCO 
PUBLIC LIBRARY 



Item 1 - File 99-1392 

Note : This item was continued from the Finance and Labor Committee Meeting of 
August 4, 1999. 



Department: 



Item: 



Department of Public Works (DPW) 
Department of Parking and Traffic (DPT) 

Ordinance authorizing the Department of Public Works 
(DPW) to accept a gift of $550,000 from the City of San 
Francisco Western Addition Parking Corporation for the 
renovation of the Peace Plaza at the Japanese Cultural 
and Trade Center; approving the dissolution of the City of 
San Francisco Western Addition Parking Corporation and 
accepting the remaining assets and Labilities of said 
corporation; approving the transfer of said assets and 
liabilities to the Japantown Garage Parking Corporation; 
approving the form of lease of the Japantown Garage to 
the Japantown Garage Parking Corporation; ratifying 
previous actions taken in connection with the foregoing 
matters; and authorizing the taking of appropriate 
actions in connection therewith. 



Location: 



1660 Geary Boulevard between Webster and Laguna 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

Overview 



The proposed ordinance would authorize the following 
actions: 



• Authorization for DPW to accept a $550,000 gift from 
the City of San Francisco Western Addition Parking 
Corporation (WAPC) 

• Dissolution of the WAPC 

• Funding of the City of San Francisco Japan Center 
Garage Corporation (JCGC) through the transfer of 
WAPC assets and liabilities to JCGC 

• Authorization for the DPT to lease the Japan Center 
Parking Garage facilities to JCGC, and 

• Ratification of previous matters and authorization of 
future related matters 

The Japan Center Parking Garage facilities (hereinafter, 
the "Garage") is comprised of two parking structures that 
accommodate a total of 850 vehicles. According to Mr. 
David Sanchez, Deputy City Attorney, the Garage is 
owned by the City and leased by WAPC through a 
leasehold interest. Mr. Sanchez also reports that under 
the provisions in the proposed ordinance, the Garage will 
continue to be owned by the City though now leased by 
JCGC instead of WAPC. 

Attachments 1 and 2, provided by DPT. explain the 
background facts associated with the Garage. According 
to DPT, the proposed ordinance is in the best interests of 
the City because it favorably positions the City and DPT 
to meet future anticipated debt service obligations related 
to a proposed new parking garage development, called the 
Jazz Garage, which would be located at Fillmore and 
Eddy Streets. The proposed Jazz Center Garage would be 
separate from the Japan Center Parking Garage and 
would accommodate 466 vehicles. Financing and 
construction of the Jazz Center Garage would be subject 
to future Board of Supervisors approval. 

To facilitate the financing of a new Jazz Center Garage, 
DPT proposes to dissolve the current Japan Center 
Parking Garage nonprofit corporation. WAPC. By 
dissolving WAPAC and negotiating a new lease with the 
BOARD OF SUPERVISORS 
BUDGET ANALYST 
2 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



proposed Japantown Garage Parking Corporation, a 
current Gross Receipts Tax obligation assessed against 
WAP AC would cease. Under Section 1004.16 of the 
Administrative Code, Gross Receipts Taxes must be paid 
by nonprofit garages that issue bonds. Currently the 
Gross Receipts Tax for nonprofit garages is set at 25 
percent of gross receipts, and must be paid in addition to 
Parking Taxes. 

The proposed new lease with the Japan Center Parking 
Corporation would also direct 85% of the Garage's net 
income, after payment of operating expenses, to the City. 
Currently, WAPC retains all net income and gives surplus 
funds to the City, as and when their Board of Directors 
deems it appropriate. Traditionally, nonprofit 
corporations, like WAPC, which were used to finance 
parking garages, give surplus funds derived from the 
garage's income to the City if and when those monies are 
no longer needed for debt sendee or for capital 
improvements or alterations, according to Mr. Ron Szeto, 
Deputy Director, of the DPT. Mr. Szeto states that the 
anticipated revenue benefit of directing 85% of the 
Garage's net income to the Off-Street Parking Fund will 
be $627,938 annually. 

According to DPT, under the existing WAPC lease, DPT 
must pay the Garage's Gross Receipts Tax to the City. 
The amount of the Gross Receipts Tax paid by DPT on 
behalf of WAPC is $437,717 annually. 

Therefore, b3 r dissolving the WAPC lease and leasing the 
Garage to the Japantown Garage Parking Corporation, 
the Off-Street Parking Fund would realize additional 
income from the Garage's parking revenues of $627,938 
annually, and would not have to pay $437,717 annually in 
Gross Receipts Taxes to the City's General Fund. 
Therefore, the net benefit to the Off-Street Parking Fund 
would total $1,065,655 annually. However, the General 
Fund would receive reduced Gross Receipts Tax revenues 
of $437,717 annually. 

The DPT also estimates that the proposed Jazz Garage 
would increase parking revenue to the Off- Street Parking 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



Fund by $58,597 annually and increase Parking Tax 
revenues to the General Fund by $179,772 annually. 

Therefore, if the DPT projection proves accurate, the net 
reduction in annual revenue to the General Fund would 
be $257,945 ($437,717 in reduced Gross Receipts Taxes 
less $179,772 in new Parking Taxes). The Budget Analyst 
notes however, that such estimated new revenues from a 
Jazz Center Garage will only be realized if and when the 
new Garage is built and becomes operational. 

According to Mr. Szeto, the ultimate goal of this 
organizational and financial restructuring is to position 
the City and DPT to adequately cover future, projected 
debt service obligations for the new Jazz Garage, which 
are estimated to be between $1.1 and $1.2 million 
annually. Mr. Szeto reports that such costs would be 
funded by the $437,717 that would become available if 
the Gross Receipts Tax obligation no longer has to be paid 
by DPT to the City's General Fund, new Off-Street 
Parking Fund income derived from the JCGC lease of 
$627,938 from parking revenue's, and projected operating 
income from the new Jazz Garage of $68,938, for a total of 
$1,134,593. 

Mr. Szeto also reports that the cost and financing plan 
details for the new Jazz Garage development have not yet 
been finalized. The proposal to finance and build the Jazz 
Center Garage will be subject to future Board of 
Supervisors approval. 

The Gift and Lease actions of the proposed ordinance are 
outlined below. 



GIFT 



Gift Amount: 
Description: 



$550,000 

Prior to the dissolution of the Western Addition Parking 
Corporation (WAPC), WAPC will gift $550,000 in cash to 
DPW for the renovation of the Peace Plaza at the 
Japanese Cultural and Trade Center. The $550,000 would 
be used for waterproofing the Peace Plaza, which is 
located on top of the Japan Center Garage and currently 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

4 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



LEASE 



leaks water into the Garage causing damage to the 
structure. 

According to Mr. Szeto, the gift proceeds represent a 
portion of WAPC's equity and will be specifically 
appropriated by DPW for waterproofing the Peace Plaza. 
The Peace Plaza is a hardscape plaza 1 located on top of 
the Garage and the waterproofing will directly benefit the 
Garage. The proposed resolution would authorize the 
DPW to accept a gift of $550,000. 



Purpose of Lease: 



Lessor: 



Lessee: 



No. of Sq. Ft.: 



Management of Japan Center Parking Garage Facilities 

City and County of San Francisco 

City of San Francisco Japan Center Garage Corporation, 
a nonprofit corporation 

The Garage contains 289,567 square feet and 
accommodates 850 vehicles. 



Annual Rent and Net 
Parking Revenues 
Payable By JCGC to 
the Off-Street Parking 
Fund: 



$1.00 over the term of the lease; plus, 85 percent of net 
revenues (meaning gross parking revenues minus 
Parking Taxes and operating expenses) estimated to be 
$627,938 annually payable to the Off-Street Parking 
Fund. 



1 Hardscape plaza is the term used to describe a park area with hard surface landscaping, as opposed 
to parks, which have tree and garden landscaping. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



Utilities and 
Janitorial Services: 



Term of Lease: 



According to Mr. Szeto, as with other nonprofit 
corporations involved in City garage management, all 
costs for utilities and janitorial services would be 
approved annually by the Controller and DPT and are the 
responsibility of the Lessee. 

The lease term is 40 years, though the City can terminate 
the lease with cause at any time. After five years, the City 
can terminate the lease with or without cause. 



Right of Renewal: 
Description: 



None. 

The proposed resolution would authorize the Department 
of Parking and Traffic to enter into a lease, without using 
a competitive bid process, with the City of San Francisco 
Japan Center Garage Corporation (JCGC), a nonprofit 
corporation, to manage the Japan Center Parking Garage 
facilities located at 1660 Geary Boulevard. According to 
Section 17.11 of the Administrative Code, the Parking 
and Traffic Commission can lease a parking facility, 
without a competitive process, to a nonprofit corporation 
for the purpose of facilitating the financing of a parking 
facility, as authorized and approved by the Board of 
Supervisors. 

Also consistent with Section 17.11, JCGC would contract 
with a parking operator following a Bid/RFP process in 
accordance with the lease agreement. JCGC must employ 
a professional parking operator with a staff experienced 
in the management and operation of public parking 
facilities and the parking operator selected shall be 
subject to approval by both the Parking and Traffic 
Commission and the Board of Supervisors in accordance 
to Section 17.11 of the Administrative Code, which was 
amended in April 26, 1999 to allow for a Bid/RFP process 
instead of a competitive bid process (File No. 98-1935), 
according to Mr. Szeto. 

Under the terms of the lease, the Controller and the 
Parking and Traffic Commission will continue to have 
review and approval authority for the annual budget of 
the Garage. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

Comments: 1. According to Mr. Szeto, the $550,000 gift from WAPC 

will be used to fund necessary waterproofing of the Peace 
Plaza and will be but a part of the larger renovation 
currently already underway at the Peace Plaza. According 
to Ms. Tina Olson, Financial Manager, of DPW, the 
budgeted cost of the renovation is $2,055,648 of which 
$550,000 is coming from the WAPC gift, $600,000 from 
the San Francisco Redevelopment Agency, $350,000 from 
the General Fund through the Department of Recreation 
& Parks' FY 1999-2000 budget, $405,648 from Open 
Space monies (of which $200,000 is from previous years' 
budgets and $205,648 is from the FY 1999-2000 budget) 
and $150,000 from private, community sources. 

2. Attachment 2, provided by DPT, explains (a) the 
purpose of the WAPC dissolution; (b) the benefits to the 
City for dissolving WAPC and establishing JCGC; and, (c) 
the reasons why the City should award this lease to JCGC 
without the use of competitive bidding procedures. The 
Attachment states that the primary benefit of the 
ordinance is to financially restructure the obligations and 
rights of the City, DPT and the nonprofit corporation 
leasing the Garage. 

3. Mr. Szeto concurs with the Budget Analyst that the 
proposed ordinance should be amended to reflect that 
both: (a) the assets and liabilities will be transferred to; 
and, (b) the lease will be signed with the Japan Center 
Garage Corporation, and not the Japantown Garage 
Parking Corporation. 

4. As noted above, by dissolving the WAPC lease and 
leasing the Garage to the Japan Center Garage 
Corporation, the Off-Street Parking Fund would realize 
additional income from the Garage's parking revenues of 
$627,938 annually, and would not have to pay $437,717 
annually in Gross Receipts Taxes to the City's General 
Fund. Therefore, the net benefit to the Off-Street Parking 
Fund would total $1,065,655. However, the General Fund 
would receive reduced Gross Receipts Tax revenues of 
$437,717 annually. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 



5. On April 2, 1999 the Budget Analyst issued a 
performance audit report on the Department of Parking 
and Traffic. Section 7 of the performance audit report 
addressed City Owned Parking Garages. We reviewed the 
status of the findings and recommendations contained in 
a prior audit of City Owned Garages conducted in 1993. 
We found that DPT has implemented many of the 
recommendations from the 1993 performance audit. Since 
1994, parking garage revenues have increased, operating 
costs have been kept under control, and many 
improvements to the City-owned parking garages have 
been made. However, we also found that certain 
important recommendations from the Budget Analyst's 
1993 Performance Audit had not yet been fully 
implemented. 

Attachment 3 provides the Department of Parking and 
Traffic's response to each of our recommendations 
concerning City Owned Garages, presented to the Board 
of Supervisor's Audit and Government Efficiency 
Committee on May 18, 1999. With respect to non profit 
parking corporations, the Budget Analyst's performance 
audit recommended that DPT convert the existing 
parking operator contracts, which provide for a flat 
management fee and reimbursement of operating 
expenses, to fixed rate management agreements, under 
which the operator agrees to a level of compensation 
based on a percentage of gross revenues or a fixed level of 
compensation, to cover operating costs and profit when 
legally and financially feasible. 

In response to this recommendation, the DPT stated that 
the DPT and the non-profit parking corporations were 
preparing bid documents and management agreements 
for non-profit parking facilities. When such documents are 
completed, DPT will forward the documents to the non- 
profit parking corporations who will then solicit 
proposals. According to Mr. Szeto, the documents are now 
under review and it is anticipated that the first issuance 
of requests for proposals will occur in the last calendar 
quarter of 1999. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

August 4, 1999 Finance and Labor Committee Meeting 

Recommendations: 1. Amend the proposed ordinance to replace all 

references to the Japantown Garage Parking Corporation 
with the Japan Center Garage Corporation. 

2. Approval of the proposed ordinance, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

9 



ATTACHMENT 1 



The Japan Center project bounded by Post, Laguna, Geary and Fillmore (intersected by 
Webster), started as a redevelopment project in the eariy 1960's. The Redevelopment 
Agency agreed to sell the site to a private developjr. National Braemar, Inc., for 
development as a Japanese cultural and trade center. In 1965, negotiations were 
concluded between the Redevelopment Agency, National Braemar, and the City for the 
development of the Center. National Braemar agreed to construct a privately owned 
commercial complex devoted to Japanese cultural and trade uses above the garage. Tne 
garage was to be separately financed and constructed by a nonprofit corporation. Tne 
garage, land and improvements would be given to the City subject to a 50-year lease to 
secure the corporation's repayment of the costs of acquisition and construction of the 
£ara2e. 

On April 1, 1965, the City entered into a 50-year lease with the Western Addition 
Parking Corporation ("Western") to aid and assist the City for the acquisition of the 
demise premises and the construction of the Japan Center Garages (the "Garage"') on said 
premises. Under the lease, Western agreed to finance the costs of acquisition of the 
demised premises and the construction of the Garage with the costs to be repaid out of 
revenues derived from the operations of the Garage^Under this arrangement, Western 
also retains 100% of net income for future Garage capital improvements, such as lighting 
retrofit and replacement of parking equipmenL 

Western financed the cost of the Garage construction from the sales of prior hen bonds 
(53,000.000) and subordinate bonds (S673.000). From the 1960's through the 1980"s. the 
Garage revenues were insufficient to cover the operating costs of the Garage and the debt 
service due on the bonds. As part of the agreement to the bondholders. Western received 
advances from the City (S382.552) and National 3raemar (S647.148) to meet its financial 
obligations. During this period, the City imposed a new gross receipt tax. Under the 
lease, the City was contractually obligated to pay any new tax imposed on Western and 
under this obligation, the annual gross receipt tax was passed to the City for payment. 



Provided by Mr. Ron Szeto, DPT 27 July 1999 File No. 99-1392 

10 



ATTACHMENT 2 
(Page 1 of 2) 



FUTURE GARAGE DEVELOPMENT & THE JAPAN CENTER GARAGE 

In 1995, the Redevelopment Agency approached the Parking Authority and the Western 
Addition Parking Corporation to discuss the proposed enter tainm ent complex that 
includes a 466-space garage, a jazz super cluh, and a multi-screen theatre complex 
located on Fillmore and Eddy Streets. This proposed revitalization project is as important 
to this neighborhood today as the Japanese cultural and trade center development was to 
Japantown in the 1960 ? s. Benefits generated from this proposed project would include 
increase visitors to neighborhood and increase commerce for local merchants. 

At the beginning of this proposed revitalization project, the Department of Parking and 
Traffic supported the efforts of Western Addition Parking Corporation ("Western") to 
finance the acquisition of the proposed garage component- Subsequently, the Department 
and the City concluded that the best interest of the City would be served if the Parkine 
Authority directly undertook to finance the garage component of the project 

Since the projected operating income for the proposed garage was minimal and 
insufficient to cover the annual debt service, approximately $1.1 to $1.2 million, the 
Parking Authority began looking at alternative sources of revenues to fill the gap. The 
Parking Authority identified the Japan Center Garage (the "Garage") revenues as the 
source that did not impact the General Fund. Under the lease with the Western, the 
corporation retained 100% of the income or approximately $700,000 annually from the 
operations of the Garage. Tne corporation uses these retained funds for future Garage 
capital improvement projects, such as, lighting retrofit and replacement of parking 
equipment Moreover, under the lease, our department was contractually obligated to pav 
for the gross receipts tax, approximately $450,000 annually, for the Garage. 

At this point we decided that the best interest of the City was to terminate the lease with 
Western. The termination would allow the Parking Authority to capture the Garage's 
income and to relieve our Department of the gross receipt tax obligations. Gross receipt 
taxes are assessed on non-profit parking corporations that issued bonds to construct a 
parking garage. Tne new non-profit corporation would not be subjected to this tax. 
During this process, Japantown community leaders expressed their concerns with 
terminating the lease. They wanted to maintain their commitment to the co mm unity 
without any personal financial benefits, by serving on the Board of Directors that 
oversees the Garage. Understanding the importance of the Garage to the local merchants, 
residents and visitors, they wanted direct involvement with the operations of the Garage 
and the selection of the professional parking operator. Based on this assessment DPT 
believes that a sole-source contract with JCGC is in the best interest of the Citv. 



Provided by Mr. Ron Szeto, DPT 27 July 1999 File No. 99-1392 

11 



ATTACHMENT 2 
(Page 2 of 2) 



GIFT FUNDS 

Also, the community wanted to improve the Peace Plaza, which has been delayed for 
many years due to insufficient funding. The Western offered a S 5 50,000 gift to the 
Department of Public Works to increase the funds for the Peace Plaza Renovation 
Project This gift will have direct and indirect benefits to the Garage and the community. 
For years, the Garage has experienced water leakage problems. Tnis gift would allow 
DPW to incorporate a superior water-proof material that would keep water from 
penetrating the concrete slabs into the Garage. Renovation of the Japantown Peace Plaza 
would increase the number of visitors to the community and thus generate more Garaae 
revenues. The remaining capital funds balance of approximately S200.0O0, at this time, 
would be sufficient to meet any capital projects in the near future. 



FISCAL IMPACT 

The financial benefits of dissolving Western are £437,717 of tax savings and 5627,938 
(85% of 5738,750) of new income for our Department. The 15% of net income that the 
new corporation would retain would be use for improvements to the Garage. If approved, 
the Parking Authority will use the tax savings of 5437,717. new income to the 
Department of 5627,938, and any operating income from the proposed new garage 
projected to be 568,938 (for a total of SI, 134,593) to offset any debt service (projected to 
be 51.1 to $1.2 million) for the proposed Jazz Garage. 



SUMMARY & STATUS OF NEGOTIATIONS FOR JAZZ GAR-AGE 

The primary benefit of the ordinance is to financially restructure the obligations and 
rights of the City, DPT and the nonprofit corporation leasing the Garage. .And, due to the 
above financial reasons and the sensitivity towards the community's concerns, the 
Parking Authority Commission approved a Resolution, which urges the Board of 
Supervisors to accept the gift, enter into a lease with the Japan Center Garage 
Corporation (the "Corporation"), and the transfer all assets and liabilities from the 
Western Addition Parking Corporation to the Japan Center Garage Corporation. We are 
currently negotiating a purchase price with the developer for the garage component of the 
proposed entertainment project. We will submit our proposed bond document to the 
Board of Supervisors for approval of bond issuance and the appropriarjon of funds when 
we agree on a purchase price with the developer. 



Provided by Mr. Ron Szeto, DPT 27 July 1999 File No. 99-1392 

12 



Attachment 3 - Page 1 of 2 



Section 7 City Owned Parking Garages 
The Parking and Traffic Commission should: 

7. 1 Complete the conversion from leases to management contracts with 
garage operators for all direct operation garages. Where legally possible 
and financially feasible, compensation of the operator should be based on 

. a percentage of gross revenues rather than on the basis of aflat fee. 

Currently, the San Francisco Parking Authority is reviewing several of its garage contracts to 
promote high management standards. In feet, on May 1, 1999, the San Francisco Parking 
Authority converted the Union Square Garage Lease into a one-year interim management 
agreement. To date, there are still two outstanding leases - the Golden Gateway and the 
Mission-Bartlert Garages. Tnese two garage contracts will be considered at a June Commission 
meeting. Should the Commission approve the bid documents, the Parking Authority will solicit 
bids. Provided that the bids meet our high performance standards, the SF Parking Authority and 
will enter into new contracts by the end of this year. 

7.2 Include detailed performance specifications, with penalty clauses, in all 
management contracts with all direct operation garage operators, covering 
garage personnel, security, maintenance, and signage. 

Tne Parking Authority is in wholehearted agreement that this is a good management practice. 
Our recent agreements include more detailed performance specifications and penalty clauses. 

7.3 Direct the DPT Off-Street Parking Division to monitor direct operation 
garage compliance with performance specifications through twice-monthly 
checklist inspections, and submit six month reports to the Parking and 
Traffic Commission on operator performance and revenues. 

Tne Parking Authority staff has already begun a scheduled twice-monthly inspection of parkins 
garages and metered facilities. 

DPT together with the Non-Profit Parking Corporations should: 

7. 4 Convert the existing parking operator contracts, which pro side for a flat 
management fee and reimbursement of operating expenses, to fixed rate 
operator contracts under which the operator agrees to a level of 
compensation based on a percentage of gross revenues to cover operating 
costs and profit when legally and financially feasible, contracts should be 

Source: Department of Parking and Traffic - May 18, 1999 

13 



Attachment 3 - Page 2 of 2 



bid based on a fixed level of compensation that covers both operating 
expenses and profit 

The Department, the City Artomev's Office, and the non-profit corporanons are preparins the 
bid documents and management asreements for non-profit garage parking facilities. Once the 
bid documents are prepared by the City Attorney's Office, DPT will forward the documents to 
the non-profits. Thereafter, the non-profits will solicit the proposals. 

7.5 Competitively bid the existing fixed rate operator contracts on a regular 
basis, at least every five years, starting immediately. 

Currently, most contracts are reviewed on a five-year basis. The Parking Authority staff is 
looking to standardize a five-year review for all garage contracts. 

7. 6 Include detailed performance specifications and reporting requirements 
with penalty clauses in all contracts with operators 

Tne Parking Authority concurs with the Budget Analyst's recommendation and will include this 
recommendation whenever possible. 

7. 7 Direct staff to monitor compliance with performance specifications, and 
report to the Parking and Traffic Commission every six months on operator 
performance and revenues. 

As mentioned as a response to section 7.3. staff has already scheduled rwice-monthiv inspections 
of the non-profit sarases. 



Source: Department of Parking and Traffic - May 18, 1999 

14 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 

Item 2 - File 99-1266 



Department: 
Item: 



Description: 



Comment: 



Public Utilities Commission 

Amending Part II, Chapter X, Sections 150.1 - 150.12 of 
the Public Works Code concerning the imposition of Hens 
to recover revenues from delinquent water and sewer 
service accounts. 

Existing provisions of Part II, Chapter X, Sections 150.1 - 
150.12 of the Public Works Code create a process for the 
imposition of hens on San Francisco residential and 
commercial properties if owners or tenants fail to pay 
their water and sewer service charge bills. As outlined in 
the Attachment, a memorandum dated June 14, 1999 
from Mr. John Mullane of the Public Utilities Commission 
to the Finance and Labor Committee, the proposed 
ordinance would make various amendments to the Public 
Works Code pertaining to (a) the imposition of hens on 
Property Tax bills for dehnquent water and sewer service 
charge accounts, and (b) the collection of revenues from 
such dehnquent accounts, as follows: 

(1) Eliminating the priority of hens on Property Tax bills 
for dehnquent water and sewer service charges over 
earlier deeds of trust (such as mortgages) recorded 
against the properties in question, as required by 
State legislation; 

(2) Exempting tenant-occupied, individually metered, 
residential dwellings from the imposition of a water 
and sewer sendee charge hens, as required by State 
legislation; 

(3) Authorizing the collection of security deposits; 

(4) Permitting the Pubhc Utilities Commission to transfer 
collection of dehnquent closed water and sewer sendee 
charge accounts to the Tax Collector's Bureau of 
Delinquent Revenue Collection; and 

(5) Increasing the levels of write-off which can be 
authorized for delinquent water and sewer sendee 
charge bills from $50 to $200 per account. 

Mr. Mullane estimates that the proposed amendments are 
revenue neutral and should not result in either a net 
increase or a net decrease in revenues, as these 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



amendments primarily codify existing Public Utilities 
Commission practices. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



7-16-99 07:50AM FROM SF WATER DEPARTMENT TO 2520(6! 



P004/005 




CITY AND COUNTY OF SAN FRANCSCO 

PUBLIC UTILITIES COMMISSION 

Customer Service Bureau 

WILLIE L BR3WK. JR, MAYOR 
ANSON B. MORAN. GENERAL MANAGER 




ANN HOLLER CAEN 
PRS5C£VT 

FRANK U COOK 
VE£ PRESJOEWT 
E. DENMS NORMANDY 
VKTTOR G. kAAXRAS 
BEN l_ MOM 



SANFRANCSCO 
WATER DEPARTMENT 

HETOIHETCHY 
WATER AND POWER 

SAN FRANCISCO 
CLEAN WATER PROGRAM 



TO: 
FROM: 

DATE: 
RE: 



MEMORANDUM 



Finance and Labor Committee Members 



John P. Mullane, Manager 
PUC Customer Service Bureau 

June 14, 1999 



AMENDMENT TO ARTICLE 4.3 OF THE SAN FRANCISCO PUBLIC 
WORKS CODE (SECTION 150.1 - 150.13/DEL1NQUENT WATER AND 
SEWER SERVICE CHARGES) 




Recommended Action: 

Approve amendment to the referenced section of the San Francisco Public Works Code 
to reflect changes in organizational structure, to incorporate effects of State of California 
legislation, to clarify the role of the Lien Hearing Committee, and to increase the 
Committee's authority in the write off of delinquent water and sewer bills. 

Background: 

In recent years two organizational changes occurred within the Public Utilities 
Commission: (1) various functions, including representation on the Lien Hearing 
Committee on the part of the Department of Public Works and the Chief Administrative 
Officer, were transferred under the auspice of the Mayor's Office from the Chief 
Administrative Officer and the Department of Public Works to the Public Utilities 
Commission; similarly, (2) the Water Department was reorganized along operational 
lines including the deletion of the General Manager position from the organizational 
structure. Since all of these organizations or positions are reflected in the language of 
the existing lien ordinance, it is appropriate to remove such references from the 
ordinance. 

Prior to the passage of AB 1770. the Public Utilities Commission had the authority to 
place liens for the non-payment of delinquent water and sewer service bills on all real 
property in the City and County of San Francisco. AB 1770, passed in 1996, exempts 
single family, non-owner occupied properties from the lien process. Language is 
included in the ordinance to reflect this anomaly from the Commission's overall authority 



426 MASON STREET • SAN FRANCISCO • CALIFORNIA 94102 • |416) 923-2467 • FAX 14151 771-4421 

17 



07- i 6-99 07:50AM FROM S? WATER DEPARTMENT TO 2520461 fUUD/UUc 



Finance and Labor Committee Members 

April 29, 1999 

Paoe2 



to place liens against real property. Similarly, AB 485, requires that liens on real 
property for unpaid utility charges shall be subordinate to any prior recoroed lien on the 
property. Thus, reference to the use of 'special assessment" iiens is deleted. 

The Lien Hearing Committee has been functioning as a designated hearing body for the 
Public Utilities Commission and the Chief Administrative Officer since the inception of 
the ordinance over twenty (20) years ago. The Commission has never been formally 
nor officially active in this capacity and has always delegated decision makjng authority 
to the Committee. Language is proposed to clarify that the Committee is designated to 
act for the Public Utilities Commission in this hearing capacity. 

Various changes in lien processing necessitated by changes to State Law and other 
changes of various types to the Bureau's operating environment has resulted in the 
need for more aggressive collection practices. One such practice, utilizing the Tax 
Collector's Bureau of Delinquent Revenue, requires referencing in the ordinance, and, in 
particular, gives that agency the authority to recoup all of its collection costs so as to not 
diminish the revenue captured for the Public Utilities Commission. 

At the time that the lien ordinance was written, sewer service charges were not included 
on the bills, water rates were significantly lower and the City was experiencing its first 
memorable drought in the late 70's; this combination of circumstances resulted in water 
bills being extremely small, making the inclusion of a ceiling of $50 00 for the purpose of 
writing off bad debts on the part of the Committee appropriate. Today, with the increase 
in rates over time, the inclusion of a sewer service charge which is approximately four 
times greater than the water charge, and the fad that average consumption has 
increased since the 1S78 period, there are very few, rf any, accounts that are billed on a 
bi-monthly basis that do not exceed $50.00. Administratively, it is suggested that a new 
limit for write offs of $200.00 is more appropriate for the size of toda/s bills. 

Analysis/Reason for Recommendation: 

Language changes would be made to Article 4.3 (Delinquent Water and Sewer Service 
Charges). Sections 150.1 - 150.13 of the City's Public Works Code to "dean up' 
language necessitated by organizational changes within City government state 
legislative action and recommendations for minor poiicy changes. 

Organizational changes resulting in a reconfiguration of the Water Department require 
changes in language from the use of the term "San Frandscc Water Department" tc that 
of the "Public Utilities Commission" and deletion of the reference to the position of 
General Manager of the Water Department which is no longer utilced (Sec 
150.1,150.10). Other organizational changes resulting in the reassignment of various 
responsibilities from the Chief Administrative Officer to the Public Utilities Commission 
also require the deletion of references to that office (Sec. 150.6). 



Finance and Labor Committee Members 
April 29, 1999 
Page 3 



Passage of AB 1770 by the State Legislature exempts single family, non-owner 
occupied properties from trie placement of liens for delinquent water and sewer service 
charges; the proposed amendment would incorporate language reflecting this legislative 
change (Sec. 150.2, 150.4). 

AB 1770 also includes the authority to require a security deposit prior to establishing an 
account for water and sewer service charge (this authority is already included in the 
Public Utilities Commission's Rules and Regulations Governing- Water Service To 
Customers ). The proposed amendment would incorporate language paralleling trie A8 
1770 authority and reiterate what is already included in the Rules and Regulations 
(Sec. 150.2). 

Proposed language would clarify the role of the Public Utilities Commission vis-a-vis the 
Lien Hearing Committee and, in effect, delegate authority to the Committee to hold 
periodic (typically monthly) hearings related to the potential placement of liens against 
real property. (Sec. 150.7, 150.8). 

An increase in the Lien HGaring Committee's authority to write off delinquent accounts 
from less than S50.00 up to a new limit of $200.00 is also recommended (Sec. 150.12). 

Fiscal Implications: 
None 



Attachments: Proposed Legislation 

Cc: Gloria Young, Clerk of the Board 
Anson B. Moran 



JPM/mg 



19 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 

Item 3 - File 99-1489 



Department: 
Item: 



Amount: 



Description: 



Asian Art Museum 

Resolution authorizing and directing the sale of not to 
exceed $16,730,000 of City and County of San Francisco 
General Obligation Bonds (Asian Art Museum Relocation 
Project), Series 1999D; prescribing the form and terms of 
said Bonds; authorizing the execution, authentication and 
registration of said Bonds; providing for the appointment 
of depositories and other agents for said Bonds; providing 
for the establishment of funds related thereto; approving 
the forms of Official Notice of Sale of Bonds and Notice of 
Intention to Sell Bonds; directing the publication of the 
Notice of Sale and Notice of Intention to Sell Bonds; 
approving the form and execution of the official statement 
relating thereto; approving the form of the Continuing 
Disclosure Certificate; approving modifications to 
documents; ratifying certain actions previously taken; and 
granting general authority to City officials to take 
necessary' actions in connection with the authorization, 
issuance, sale and delivery of said Bonds. 



Series Description 

1999D Asian Art Museum 

Relocation Project 



Amount 



$16,730,000 



In November of 1994, a total of $41,730,000 in General 
Obligation Bonds (Asian Art Museum Relocation) was 
approved by the electorate for seismic and other 
improvements to the old Main Library building in order to 
renovate the building as the new site of the Asian Art 
Museum, which is presently housed in a City-owned 
building in Golden Gate Park. In May of 1996 the Board 
of Supervisors approved the issuance of Series 1996E 
General Obligation Bonds (Asian Art Museum 
Relocation), totaling $25,000,000, leaving a remaining 
unsold amount after the sale of $16,730,000. Proceeds 
from the sale of the initial series of these bonds were for 
(a) design and construction of seismic improvements and 
for hazardous waste abatement at the old Main Library 
building, for a total cost of $24,893,770, and for (b) the 
costs associated with the sale of the bonds, for a total cost 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



of $106,230 or 0.4 percent of the total value of the bonds 
issued. 

The Asian Art Museum Relocation Project wiU cost 
approximately $125,150,000 (increased by $34,000,000 
from the original estimate of $91,150,000, which included 
$88,300,000 in direct project costs and $2,850,000 in 
relocation and other related costs) to complete and will be 
funded through $9,420,000 in 1989 Public Safety 
Improvement General Obligation Bond funds, 
$41,730,000 in 1994 Asian Art Museum Relocation Project 
General Obligation Bond funds, an estimated $4,000,000 
in interest accrued on the bonds, and approximately 
$70,000,000 (increased from the original estimate of 
$40,000,000) in private donations (see Comment 8). 

The proposed resolution pertains to the sale of 
$16,730,000 in Series 1999 D General Obligation Bonds, 
which represents the unsold amount of the General 
Obhgation Bonds approved by the electorate in November 
of 1994 for the Asian Art Museum Relocation Project. 

General provisions of the sale of the bond funds (Series 
1999D) would be as follows: 

• The sale of the bonds is tentatively scheduled to be 
held Wednesday. September 22. 1999. 

• Under the proposed resolution, the bonds would be 
sold at an interest rate which would not exceed 12 
percent per year and will mature in the no later than 
June 15. 2020. 

• Property taxes collected to redeem the bonds will be 
deposited m the special funds account which would be 
created specifically for this purpose. 

• An official statement describing the proposed bonds to 
be issued is referenced in the proposed resolution for 
approval by the Board o f Supervisors. The official 
statement would be available to all bidders for the 
bonds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance and Labor Committee 

August 18. 1999 Finance and Labor Committee Meeting 

• Bonds will be awarded to the bidder wbose bid 
represents the lowest interest cost to the City. 

• The City Treasurer may appoint fiscal agents or 
financial institutions to distribute bond interest 
payments. 

Comments: 1. According to Ms. Laura Opsahl Bordelon of the Mayor's 

Office of Public Finance, the $16,730,000 in proceeds from 
the sale of the subject bonds will be used for 
reconstruction of the old Main Library building, including 
structural, electrical and plumbing, heating and 
ventilation, and roofing construction, to prepare for the 
relocation of the Asian Art Museum. Attachment I, 
provided by Ms. Ikuko Satoda of the Asian Art Museum, 
contains the projected budget to be financed by the 
subject bond proceeds. 

2. Under the proposed resolution, the annual interest rate 
for the bonds could not exceed 12 percent. However, Ms. 
Bordelon reports that if the bonds are sold in September 
of 1999, the bonds would probably be sold at an overall 
effective interest rate of approximately 5.27 percent, and 
would have an average interest rate of 5.4 percent over 
the 20-year term of the bonds. 

3. Ms. Bordelon estimates that, with a 20-year term for 
tbe Series 1999D bonds, and an expected average interest 
rate of approximately 5.4 percent, the proposed sale of 
bonds in the total amount of $16,730,000 would result in 
total interest costs of approximately $10,770,586 and a 
total debt service requirement of approximately 
$27,500,586 over the life of the bonds. Over the 20-year 
period, this would result in an average debt service 
requirement of approximately $1,375,029 per year. 

4. According to Ms. Ann Carey in the Controller's Office, 
the proposed Series 1999D bond sale in the amount of 
$16,730,000 would result in an increase in the Property 
Tax rate of approximately $0.0021. At that rate, the 
owner of a single family residence assessed at $400,000 
would paj 7 $8.38 in additional Property Taxes annually 
due to the issuance of these bonds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

22 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



5. Ms. Bordelon states that the City's General Obligation 
bonding capacity, which is equal to three percent of the 
City's net assessed property value, is $1,920,239,059 
based on a net assessed valuation of $64,007,968,636 for 
Fiscal Year 1998-99. Ms Bordelon states that, as of June 
15, 1999, the City had outstanding $887,090,000 
aggregate principal amount of General Obligation Bonds, 
not including the subject Bonds of this resolution, which 
is equal to 1.39 percent of the net assessed valuation of 
$64,007,968,636. Therefore, Ms. Bordelon advises that 
the City's current available General Obligation bonding 
capacity is approximately $1,033,149,059. The proposed 
sale of bonds in the amount of $16,730,000 would reduce 
the City's bonding capacity from $1,033,149,059 to 
approximately $1,016,419,059. 

6. Ms. Bordelon advises that the cost of selling the bonds, 
including fees for private bond counsel and the services of 
the City Administrator and City Attorney, are expected to 
be approximately $173,000, or 1.03 percent of the total 
value of the bonds issued. 

7. Approval of the proposed resolution would authorize 
the sale of up to $16,730,000 in General Obligation Bonds 
(Series 1999D). However, all future expenditure 
appropriations of the bond proceeds, including the 
appropriation for the bond issuance costs, would be 
subject to separate approval by the Board of Supervisors 
through supplemental appropriation ordinances. 

8. Attachment II. provided by Ms.Satoda. contains (ai an 
explanation as to why an additional $34,000,000 is needed 
to complete the Asian Art Museum Relocation Project, 
resulting in the total estimated project costs increasing 
from $91,150,000 to $125,150,000. and (b) the status of 
the projected amount of $70,000,000 to be received from 
private donations for financing this $125,150,000 project. 
According to Attachment II. of the $70,000,000 in 
anticipated private donations. $62,000,000 has been 
pledged, and $34,500,000 has actually been collected. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



MSn 



i'age 1 of 3 



ASIAN ART MUSEUM 
Or SAN FRANCISCO 



Ausust 11. 1999 



Mr. Harvey Rose 

Budget .Analyst 

1390 Market Street, Suite #1025 

San Francisco, CA 94102 



Dear Mr. Rose: 

Enclosed is the Public Contract Construction Budget for the Asian Art Museum. Also 
enclosed is a breakdown of the construction costs associated with the SI 6 million bond 
measure. 

If you have any questions or need further explanation regarding the above, please do not 
hesitate to contact me. 



Sincerely, 

Dcuko Satoda 
Chief Operating Officer 
Asian Art Museum 
Ph. (415)557-6813 
Fax (415)557-6838 

cc: Severin Campbell 



rHONC-MooN Lnr rr.vrri; 
mi; \m-\\ \ki -\\i' n . 

I'ARK 
S >\ 'I, V\CISC(i 
CALM im:\I\ U4! is 
PHONI >Alfi «7u..SMH 

tpi> .- i --:>- 



ASIAN ART MUSEUM 



'ap.e 2 or 



TOTAL CONSTRUCTION COSTS - Public 


Bid 




DESCRIPTION 






BUDGET 


Isolator & Flat Jacks Procurement 






$3,995,000.00 


Structural & Soft Demolition 






S2.660289.0C 


Site Shoring 






S4e&.76o.oc 


Earthwork, Grading, Paving. Civil Demo. 






S1.07C.272.0D 


Concrete 






S6.757.70E.00 


Structural Steel, Lateral Bracing & Metal Decks 






Sl4.222.e95.00 


Bid Contingencies 






S1. 250.046.00 


Chanae Order Contingencies 






S5.O4O.185.O0 






Total Structural 


531.501,155.00 


Conveying Systems 






S1.072.000.0C 


Fire Protection 






S880.000.00 


Plumbing 






$422 456.0C 


HVAC 


S1379.116.0C 


Electrical 






S649.675.00 


Bid Continaencies 


S245.272.0C 


Change Order Contingencies 


S9S1.0S9.0C 




Total Conveying, 


HVAC and Other 


S6. 131. 806.00 


Reinforced CMU 






S249.95C.0C 


Fluid Applied Waterproofing. Elastomenc Deck 






S4C.920.00 


Built-Up Roofing 






S252.940.0C 


Batten Seam Metal Roofing. Cladding 






S144.110.0C 


Flashing & Sheet Metal 






S71, 700.00 


Roof Specialties 


S10.000.0C 


Metal Fabrications, Steel Stairs. Railings 


SI. 056.380.00 


Doors, Frames & Hardware 






S355.350.0C 


Glass & Glazing 






S756.240.0C 


Bid Contingencies 






S148.281.00 


Change Order Contingencies 






S593.122.0C 




Total Roofing and Materials 


S3.707. 013.00 


Curbs. Sidewalks & Slabs 






Si 14. 275. 0C 


Site Utilities 






S167.354.0C 


Fire Stopping Blankets 






S714.000.0C 


EIFS 






S7C2.075.0C 


Spraved Fire-Resistive Matenals 






S40C.000.0C 


Acoustical Ceiling 






S86.310.0C 


Fioonng 






S555.974.0C 


Painting, Wall Covenngs 






S295.094.0C 


Toilet Partitions 






S50.000.0C 


Window Washing System 






S350.000.00 


Food Service Eauipment 


S162.213.0C 


Drywall, Insulation. Metal Framing. GRG 


S2.442.998.00 


Bid Contingencies 






S306.120.0C 


Change Order Contingencies 






Si. 232 481. 0C 




Total Insulation and Other 


S7.703. 004.00 




Other Miscellaneous Contracts 






52.000.000.00 




Total Public Contracts 






555.037.980.00 



25 



ASIAN ART MUSEUM 



Page 3 of 3 



CONSTRUCTION BUDGET FOR THE UNSOLD PORTION OF 1994 AAM 
RELOCATION PROJECT BOND 516,730,000 


DESCRIPTION BUDGET 


Structural Steel, Lateral Bracing & Metal Decks S1 ,548 t 971 .00 


Bid Contingencies $1, 260. 046.00 


Cnange Order Contingencies S5, 040, 185. 00 


Structural and Contingencies! S7, 849,202. 00 


Conveying Systems 51.073,000.00 


Fire Protection 5880,000.00 


Plumbing 5423,455.00 


HVAC 51,879,116.00 


Electrical 5549,875.00 


Bid Contingencies 5245.272.00 


Change Order Contingencies 5981 ,089.00 


Total Conveying, HVAC and Other| $6,131,808.00 


Reinforced CMU S249, 950.00 


Fluid Applied Waterproofing, Elastomenc Deck 543,920.00 


Built-Up Roofing 5262.940.00 


Batten Seam Metal Roofing, Cladding 5144,110.00 


Flashing & Sheet Metal 571 ,700.00 


Roof Specialties 510,000.00 


Metal Fabrications, Steel Stairs, Railings 51,058,380.00 


Doors, Frames & Hardware S366,360.00 


Glass & Glazing 5541,620.00 


Roofing and Materials| 52,748,990.00 




$16,730,000.00 



26 



August 11, 1999 

Mr. Harvey Rose 

Budget Analyst 

1390 Market Street, Suite #1 025 

San Francisco, C A 94102 



Mn 



ASIW ART MUSEUM 
OFS^\ , FRANCISCO 






RE: Issuance of general obligation bonds for the Asian Art Museum 

Explanation of the projected increase in costs for AAM relocation 

The Asian Art Museum relocation from Golden Gate Park to Civic Center is budgeted at 
SI 25 million of which project costs of SI 15.6 million is directly associated with the 
seismic retrofit and the adaptive reuse of the Old Main Library. The remaining non- 
project costs of S9.6 million is related to Relocation and Capital Campaign. 

Project costs were originally estimated to be approximately S88.3 million. Due to project 
approval delays, legal fees, historical preservation requirements and inflation, the project 
costs increased by S27.3 to SI 15.6 million. 

Private Donations 



The projected target for private donations is S70 million; (Total budget of SI 25 million 
less S51 million bond issues and estimated interest of S4 million from bonds). 

Total amount pledged through 6.30/99 is S62 million. 

Payments received through 630/99 is S34.5 million. 

Donor Information 

The pledge to-date has come from: 
Approx: 72% Individuals 
Approx: 25% Charitable Foundations 
Approx: 3% Corporations 

It is the Museum's policy not to disclose donor information. 

Please do not hesitate to contact me if you have any questions or need further 
explanation. ^^^ * 

Ikuko Satoda 
Chief Operating Officer 
Ph. (415)557-6813 
Fax (415) 557-6838 

cc: Severin Campbell 



27 



CHONC-MOON LEE CENTER 
FOR ASIAN ART AN[i CULTURE 

GOLDEN GATE PARK 
SAN FRANCISCO 
CALIFORNIA 04 I \t. 
PHONE - 
FAX 14151 661 
TDD (4 15 I ^<2-2b:-S 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



Item 4 -File 99-1524 

Department: 

Item: 



Grant Amount: 
Grant Period: 
Source of Funds: 

Indirect Costs: 
Description: 



Administrative Sendees 

Resolution authorizing the Solid Waste Management 
Program of the City and County of San Francisco to 
accept and expend $25,000 from the California Integrated 
Waste Management Board for an urban compost, 
recycling and market development pilot program. 

$25,000 

June 24, 1999 through June 30, 2000 

California Integrated Waste Management Board 
(CIWMB) 

CIWMB does not allow for the inclusion of indirect costs. 

The Sustainability Plan for San Francisco, a plan for San 
Francisco's long-term environmental sustainability 
drafted by a collaboration between the City and 
community organizations and approved by the Board of 
Supervisors in July of 1997, recommends that San 
Francisco (a) promote the composting of agriculture and 
food organic residuals produced within the Citj- and (b) 
evaluate and develop markets for compost and other 
organic residual products. By the year 2001, the 
Sustainability Plan recommends that 25 percent of 
agricultural and food organic residuals are composted or 
recycled. As one step toward meeting this goal, the Solid 
Waste Management Program (SWMP), which is a 
program of the Department of Administrative Services 
responsible for ensuring that the City meets targeted 
goals for waste reduction, has participated with the San 
Francisco League of Urban Gardeners (SLUG), a 
nonprofit community-based organization, in developing 
the City's home and school composting programs, which 
include free workshops, a telephone hotline, brochures, 
volunteer training, discount compost bin sales and school 
cafeteria composting. 

In 1995 SLUG set up a composting and chipping program 
at the St. Mary's Urban Youth Farm, which occupies the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 

southeast portion of St. Mary's Park located between 
Crescent Avenue and Alemany Boulevard. The St. Mary's 
Urban Youth Farm provides (a) a chipping service, which 
chips residential brush, tree limbs and other yard debris 
into small pieces for disposal, and (b) a composting 
service, which is the process in which organic waste 
matter decomposes into soil-like material to be used for 
fertilizer and other soil-enhancing products. 

The purpose of the proposed grant would be to extend the 
current chipping and composting program at St. Mary's 
Urban Youth Farm to include an urban compost- 
marketing program. The grant funds would be used to 
purchase equipment to be used to screen and blend 
composts, that could then be marketed as potting mix. 
topsoil. and straight compost. The sources of compost and 
mulch to be used would be from both the residential and 
commercial landscape brush and organic residual drop-off 
site at St. Mary's Urban Youth Farm and from Norcal 
Waste Systems. Inc. Compost and mulch would be 
screened, blended with other materials, bagged, and 
marketed as "Urban Earth" to seD to nurseries, retail 
markets, and landscapers (see Comment 4). 

Approval of the proposed resolution would allow the San 
Francisco Solid Waste Management Program to accept 
and expend S25.000 in grant funds that will be used to ia) 
purchase equipment for the St. Mary's Urban Youth Farm 
pilot compost -marketing program, and (b) to provide 
training to four to six SLUG employees in the use of the 
equipment and in marketing the compost products. 

Budget: The proposed budget for the grant funds is as follows: 

Equipment 

Trommel screen* $ 3.500 

Blender/mixer 10.000 

Conveyer system 6.000 

Additional costs (shipping, tax) 500 

Subtotal S20.000 

Signage 1.000 

Training for program manager and crew 4.000 

Total S25.000 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 

August IS, 1999 Finance and Labor Committee Meeting 



Required Match: 



Comments: 



* A trommel screen is a system of removable screens used 
to filter tbe composted material to different desired sizes. 

None 

1. Although the grant period commences on June 24, 
1999, Mr. Jack Macy of SWMP advises that the proposed 
grant funds have not yet been accepted or expended. 
Therefore, the proposed resolution does not need to 
provide for retroactivity. 

2. Mr. Macy states that SWMP allocates grants to 
community-based recycling and solid-waste reduction 
projects, and that funds for such projects in the amount of 
S600,000, which come from waste-disposal fees paid by 
San Francisco businesses and residents to Norcal Waste 
Systems, Inc. for waste-collection, have been included in 
the FY 1999-2000 SWMP budget. The subject State grant 
funds in the amount of $25,000 are in addition to the 
funds budgeted for the SWMP grant allocations in the FY 
1999-2000 budget. 

SLUG had applied in FY 1998-99 for a SWMP grant in 
the amount of $40,000 to implement the subject compost- 
marketing program, but the grant was denied due to the 
unavailability of funds. SWMP will not allocate grants, 
using available FY 1999-2000 funds, until the end of FY 
1999-2000. Therefore, to assist SLUG in obtaining funds 
to implement the subject compost-marketing program 
earlier than the end of the 1999-2000 fiscal year, SWMP 
applied for and was awarded in June of 1999, the subject 
State CIWMB grant in the amount of $25,000, earmarked 
for the development of the compost-marketing program at 
St. Mary's Urban Youth Farm. Mr. Macy reports that 
SWMP proposes to allocate the subject State CIWMB 
grant funds to SLUG. 



3. Mr. Mac}- reports that SWMP awarded SLUG a 
$49,000 grant in 1995 to purchase a chipper and other 
equipment to assist SLUG in developing the chipping 
sendee at St. Mary's Urban Youth Farm; and a $63,460 
grant in 1997 to purchase a tractor, tools, and a bagger for 
bagging the composted materials, to assist SLUG in 
developing the composting service. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

30 



Memo to Finance and Labor Committee 

Aug-ust 18, 1999 Finance and Labor Committee Meeting 



4. According to Mr. Macy, SLUG projects that its annual 
proceeds from the sale of "Urban Earth" products will be 
an estimated $72,500 and that its annual costs for labor 
and supplies will be an estimated $64,000. Mr. Macy 
states that any revenues that exceed costs will be 
retained by SLUG and will be used by SLUG, in lieu of 
grant funds, for the purpose of expanding the compost and 
chipping services and the compost-marketing program. 

5. The Attachment is a copy of the Grant Application 
Information Form prepared by SWMP. 

6. The Department has prepared a Disability Access 
Checklist, which is on file with the Clerk of the Board of 
Supervisors. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



File Number: ?a S e 1 or 2 

Grant Application Information Form 

A document required to accompany a proposed resolution 
Authorizing a Department to Accept &. Expend Grant Funds 

To: The Board of Supervisors 
Attn. Clerk of the Board 

The following describes the grant referred to in the accompanying resolution: 

1. Department: Solid Waste Mangement Program 

2. Contact Person: Jack Macv. Oreanics Recycling Coordinator Telephone: 554-3423 

3. Project Title: Urban Compost. Recycling and Market Development Pilot Program 

4. Grant Source Agency: California Integrated Waste Management Board 

5. Type of Funds: Federal Federal-State (Pass-Through) X State Local Private 

6. Proposed ("New / Continuation) Grant Project Summary: 

The urban compost, recycling and market development pilot program at St. Mary's Urban Youth 

Farm will consist of the following: 

Phase One: development and establishment of a Compost'Recycle Pilot Project at an urban 

youth farm which also may incorporate use and promotion of other recycled content products or 

materials such as benches and landscaping products. 

Phase Two: training of farm personnel in use of compost equipment and operations; placement 

of public educational information boards and production of promotional materials; completion of 

quarterly progress reports; and preparation of a best practices case study upon which a 

methodology for developing other urban compost programs can be based. 

7. Amount of Grant Funding Applied for: S25.000 

8. Maximum Funding .Amount Available: S25.000 

9. Required Matching Funds? Yes: No: X / Cash or In-kind? 



If yes, list dollar amount and identify source of Matching Funds in Department Budget: 

1 0. Number of new positions created and funded: _0 

1 1. If new positions are created, explain the disposition of employees once the grant ends? 



32 



Attachment 

T r. j — 

rage 2 c: 2 

12. Are indirect costs eligible costs for this grant? Yes: _ No: X 

If yes, please identify the amount of S in indirect costs' 7 

13. .Amount to be spent on contractual services: S25.OO0 

14. a.) Will contractual services be put out to bid? NO 

b). If so, will contract services help to further the goals of the department's M3E^'\3E 
requirements? 



15. Is this likely to be a one-time or ongoing request for contracting out? one-time 

16. Term of Grant: Start -Date: when approved End-Date: June 30. 2000 

1 7. Date Department Notified of Available Funds: June 28. 1999 

IS. Grant Application Due Date: NA 



19. Grant Funding Guidelines and Options (.selected from RFP, grant announcement or 
appropriations legislation): 

N/A 



20. Department Head Approval: p„„i v b,,.^, tw .,..-... 

(Name) (Title) 

\J (Signature) 



33 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 

Item 5-99-1496 



Department: 



Item: 



Description: 



Comments: 



Public Transportation Commission 
Municipal Railway (MUNI) 

Resolution approving an agreement between tbe City and 
County of San Francisco and tbe Bay Area Rapid Transit 
District (BART) authorizing payment from BART to tbe 
Municipal Railway (MUNI) for the feeder service which 
MUNI provides to and from BART stations. 

The proposed resolution would authorize the Director of 
Public Transportation to execute an agreement 
(Agreement) between the City and BART which provides 
that BART reimburse MUNI in the amount of $2, 066,513 
for FY 1998-1999. According to Ms. Linda Coquia of 
MUNI, such payment is for the BART patrons who use 
MUNI for the purposes of linking up with BART. This 
BART payment to MUNI for FY 1998-1999 of $2,066,513 
is $131,950 more than the BART payment to MUNI for 
FY 1997-1998 of $1,934,563. 

The Public Transportation Commission adopted 
Resolution No. 99-078 on July 20, 1999, authorizing the 
Director of Public Transportation to execute the proposed 
Agreement with BART for FY 1998-1999. 

According to Ms. Coquia, a payment by BART to the City 
is mandated by the Metropolitan Transportation 
Commission (MTC). The payment of $2,066,513 for FY 
1998-1999 is based on the prior years payment, which 
was $1,934,563 for FY 1997-1998, with adjustments for 
changes in the amount of funding allocated to BART from 
the collection of Sales Taxes in three of the four counties 
BART travels through - San Francisco, Alameda and 
Contra Costa. Ms. Coquia advises that although San 
Mateo County is traversed by BART, its residents are not 
charged Sales Taxes to provide funding for BART. 

1. Ms. Coquia reports that MUNI's FY 1998-1999 budget 
included an estimated payment from BART of $2,037,094, 
or $29,419 less than the proposed payment of $2,066,513. 
According to Ms. Stella Ong of the Controller's Office, the 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

34 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



surplus revenue of $29,419 resulted in a reduced General 
Fund contribution to MUNI in FY 1998-1999. 

2. Ms. Coquia advises that BART has made annual 
payments to MUNI, under agreements similar to the 
proposed Agreement, since FY 1986-1987. The 
Attachment, provided by Ms. Coquia, contains a schedule 
of such annual payments made to MUNI by BART since 
FY 1990-1991. 

3. The proposed Agreement contains a mutual 
indemnification provision which states that the City and 
BART agree to indemnify, save harmless and defend each 
other, each other's officers, agents and employees from 
legal liability of any nature or kind on account of any 
claim for damages to property or personal injuries to or 
death of person or persons incurred by reason of any act, 
or failure to act, of either party, its officers, agents, 
employees and subcontractors, or any of them, in 
performing any duties required by this Agreement, unless 
such claims arise out of the sole negligence of either 
party, its officers, agents or employees. 

According to Mr. Keith Grand, the City's Risk Manager, 
the additional risks to the City as a result of the mutual 
indemnification provision contained in the proposed 
Agreement are negligible, and Mr. Grand has 
recommended approval of the mutual indemnification 
provision. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

35 



SAN FRANCISCO MUNICIPAL RAILWAY 



FINANCIAL REPORTING i SYSTEMS UNIT 
425 Mason street. 3 rd Floor, San Francisco, CA 94102 
TEL(415) 923-2597 FAX (415) 923-2439 






3 ART TRANSFER PAYMENTS TO MUNI FOR FEEDER SERVICE 
FROM FY 1991 THROUGH FY 1999 

Source: 3ART Budget DepL & MUNI ONLINE FAMIS 



Fiscal Year 


Payments 


% Increase 


1990-91 


$1,537,600 




1991-92 


1,562,100 


159% 


1992-93 


1,511,900 


-321% 


1993-94 


1 ,546,252 


227% 


1994-95 


1,574,119 


1.80% 


1995-96 


1,650,823 


4.87% 


1996-97 


1,806,913 


9.46% 


1997-98 


1,934,563 


7.06% 


199S-99 


2,066,513 


6.82% 



Note: 

BART Feeder calculation of the Tmnai transfer pyameni fec m. BART o MUNI is based on the prior year's payment 
and the rare of growth of BART Sales Tax Revenue over the prior two years. 



08A>9/99, 3:49 PM, BART Schedule of Payments, Linda Coquia 



TDTPL F.B2 



36 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



Item 6 - File 99-1522 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Department of Public Works (DPW) 

Hearing to consider tbe release of reserved funds in the 
amount of $622,661 to fund tbe reconstruction of three 
alleyways in Chinatown as part of tbe Chinatown 
Alleyway Improvement Project. 

$622,661 

Special Gas Tax Improvement and Road Funds 

In September of 1994, the Board of Supervisors approved 
a supplemental appropriation (Ordinance 355-94) of 
Special Gas Tax Improvement and Road Funds in the 
amount of $3,835,000 to finance the following two capital 
improvement projects: 

Chinatown Lighting Improvement Project $897,000 

Chinatown Alleyway Improvement Project 2.938.000 

Total $3,835,000 

When the Board of Supervisors approved the 
supplemental appropriation request in September of 
1994, they approved appropriations in the amount of 
$1,535,000 and placed $2,300,000 on reserve ($3,835,000 
less $1,535,000) for the Chinatown Alleyway 
Improvement Project, pending the selection of contractors 
and the submission of budget details. 

The proposed release of reserved funds in the amount of 
$622,661 would authorize the Department of Public 
Works (DPW) to use funds for the reconstruction of three 
Chinatown alleyways: Ross Street, Commercial Street, 
and Cordelia Street. Approval of this proposed release of 
funds would leave $1,677,339 on reserve ($2,300,000 less 
$622,661). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

37 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 

Budget: The budget for the proposed Chinatown Alleyway 

Improvement Project is as follows: 

Construction Contract: $508,381 

12% Construction Contingency 61.000 

Subtotal $569,381 

Engineering and Construction Management 53.280 

Total $622,661 

Attachment I, provided by DPW, contains the budget 
details for their request of $622,661. 

Comments: 1. According to Mr. Sherman Horn of DPW, DPW is 

responsible for the planning and design of the Chinatown 
Alleyway Improvement Project and for the administration 
of the construction contracts for the Project. 

2. Mr. Horn states that the proposed improvements to the 
three alleyways are as follows: 

Commercial Street, a one-block allevwav located between 
Grant Avenue and Kearnv Street 

Demolish the existing street, repair with concrete and 
special brick and replace the water main. The water main 
replacement would be paid for by the Public Utilities 
Commission (PUC) (see Comment 3). 

Ross Street, a one-block allevwav located between 
Washington and Jackson Streets 

Demolish the existing street, reconstruct with concrete 
paving, place commemorative bronze plaques, and 
reconstruct sewer. The sewer reconstruction would be 
paid for by the PUC. 

Cordelia Street, a one-block allevwav located between 
Broadway Street and Pacific Avenue 

Demolish the existing street and reconstruct with 
concrete paving. 

3. Mr. Horn reports that MH Construction Management 
Company. Inc., who submitted the low bid for the project 
in the competitive bid process, would be awarded the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance and Labor Committee 

August 18, 1999 Finance and Labor Committee Meeting 



construction contract for this project. The bid amount is 
as follows: 



Alleyway reconstruction* 
Water main and sewer replacement" 
Total 



$508,381 

133.732 

$642,113 



* The construction contract for the reconstruction of the 
three alleyways in the amount of $508,381 is included in 
the budget details for the proposed request for the release 
of funds (see Budget). 

** The contract for the replacement of the Commercial 
Street water main and Ross Street sewer reconstruction 
in the amount of $133,732 will be paid for by funds 
provided by the Public Utilities Commission and is not 
the subject of this proposed release of reserves. 

Attachment II is a list of all the companies which 
submitted bids, their MBE/WBE status, and the amounts 
of their bids. 

Recommendation: Approve the release of $622,661 in reserved funds. 

[arvey M. Rose 




cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Legislative Analyst 
Matthew Hymel 
Stephen Kawa 
Ted Lakey 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Release of Reserve Request 

Chinatown Alleyway Improvement Project 

August 5, 1999 



PROJECT DESCRIPTION 



A master plan to renovate a total of 31 alleys in Chinatown was completed by the non- 
profit group Chinatown Community Development Center formerly known as the 
Chinatown Resource Center. As a consultant to DPW, they completed community 
outreach and worked jointly with DPW to complete design of the first construction 
contract. The second contract is already in the design development stage. The goal is to 
renovate all 31 alleys in the next ten years with this first construction contract as the pilot. 
Among the benefits of renovating Chinatown's alleys are (1) a reduction in illegal 
parking and vehicle access, thereby improving pedestrian safety; (2) an increase in 
accessibility for the disabled and elderly; (3) a reduction in illegal dumping through the 
consolidation of dumpster areas; (4) the creation of open space through landscaping and 
installation of seating where appropriate; (5) the provision of attractive and safe 
secondary streets for tourists, resulting in economic benefits for Chinatown; and (6) an 
improvement in the overall quality of life for Chinatown's residents. 

The release of reserve to fund this first construction contract will demonstrate progress to 
the community and keep the momentum moving forward in achieving the goal of 
completing the renovation of all alleys identified in the master plan. 

PROJECT BUDGET 

The amount requested for release will fund construction of the first phase of work. 
Supplemental Appropriation Requests to release funds will be submitted for future 
construction phases of this project 

Note: The construction contract amount below is the low bid amount minus cost of work 
funded by PUC. 

Construction Contract $508,381 

12% Construction Contingency 61.000 

Subtotal S569.3S1 

Engineering and Construction Management S53.280 



DPW Engineering and Construction Management 



Position 


Hourly Rate 


Total Hours 


Total 

Amount 


5275 Sr. Landscape Architect 


104 


70 : 


57,280 


5210 Sr. Civil Engineer 


104 ! 


15 


1.560 


5208 Civil Engineer 


87 


40 


3.480 



40 



Release of Reserve Request 
Chinatown Alleyway Improvement Project 
August 5, 1999 
Page 3 



rage 2 ot 2 



5206 Associate Civil Engineer 


75 


100 


7.500 


6318 Construction Inspector 


70 


360 


25.200 


5305 Materials Testing 
Technician 


52 


60 


3,120 


1426 Sr. Clerk Typist 


43 


60 


2.580 


1314 Public Relations Officer 


64 


40 


2.560 


Total 




745 


$53,280 



[Total Amount Requested to be Released 



$622,661 



For any questions related to this Release of Reserve Request, please call Sherman Horn 
of my staff at 558-4488. 



Sincerely, 




Cc: Sherman Horn, DPW 

Harvey Rose, Budget Analyst 



ATTACHMENTS 

A- Ordinance No. 355-94 

B -Bid Tabulation Sheet 

C- Human Rights Commission Recommendation for Award 

D-Location Map of Alleys 



41 



' /iglUG 10 '99 ll : 35£M_CCSfjDPU,B0E.PR0JLLI runn^y -i^m ;, k^ , Mjjr.ir 



Attachment II 



SPEC NO.: 
TITLE: 

SOS RECErVED: 
BIODERS: 



City and County of San Francisco 

Department of Public Works 

TABULATION OF BIDS 



1034N 



Chinatown Alleyway Improvements 

Phase 1 

Commercial, Cordelia and Roaa 

June 16, 1898 



M H Construction Manapemont Co., Inc. 
Troyu/Grxiott Brothers a Joint Venture 



Bid Dtecourrt 


£*%£_&<: 


M5E/-BE 


642,115 


MBE/LBE/JV7-5'* 


772,630 



Average Bid 707,471 

Engineers Estimate: 576,142 

% of Engineer! Estimate: 1 22% 



APPARENT LOW BOOER. 



M H Cooatniettan tunaeenvant Co., inc. 
1416 Yosamte Avenue 
San Franoteoo. CA 64124 
Tei (415) 622-6191 



SUBCONTRACTORS: 



SLsi 

Jwx16, 1898 



LafcEVHQectnc Bedncal 15,000 

VorflBi I Eiguwft' Cancree)Pe¥t«MCPaw« 40,000 

Shew Quehneman PSMift— ll 114,000 

SnawP^efnasinc Under/art 60,000 



Shermen Ham ciarur. Kaly 

Mart Primeau Don Eng 

UndaChin FoonChow 



DPW Aecounbnfl 
Maunoc Wto-ns 
Bit Webb 



Helen Liu 
Allbidaer* 



PoaVT Pax Note 



22 



7B71 



5 pep 



Aj^aoaa, 



s^fe 



" SP S S 



■^ 



sr» 



42 



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